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Renold heads for Aim

The engineering group is raising its focus on acquisitions
Renold heads for Aim

Renold (RNO), the precision engineering products group, intends to de-list from the London Stock Exchange main market and move to the Alternative Investment Market (Aim). The engineering group told shareholders at the time of its first-half results in November that it was considering the move as part of a strategic overhaul, which included greater focus on acquisitions. Moving to Aim could “provide it with the ability to execute transactions with greater efficiency and certainty”, Renold said last year.

IC TIP: Buy at 28.2p

Pending shareholder approval, the shares' move to the junior market should take place on 6 June. An accompanying trading update revealed year-end performance in line with management’s expectations – group revenue grew by 5.7 per cent, while net debt rose, reflecting investment that included Renold’s Chinese factory. Analysts at Peel Hunt forecast full-year 2019 pre-tax profits and earnings per share of £13.9m and 4.7p, respectively, rising to £14.8m and 5p in 2020.