Renold PLC Update on Strategic Plan (6067I)
September 01 2016 - 1:00AM
UK Regulatory
TIDMRNO
RNS Number : 6067I
Renold PLC
01 September 2016
Renold plc
("Renold", "the Company" or "the Group")
Update on Strategic Plan
Sub-lease for Bredbury and European Distribution Centre Employee
Consultation Process
Renold, a leading international supplier of industrial chains
and related power transmission products, today issues an update on
its STEP 2020 Strategic Plan.
Bredbury Vacant Leasehold Property
The Group has now secured a sub-lease for the vacant 90% of the
former UK chain manufacturing facility in Bredbury. The sub-lease
will save the Group approximately GBP0.7m of cash each year when
the rental incentive period ends in April 2017. There will be a
small cash benefit in the current financial year of just over
GBP0.1m in respect of other occupancy costs.
The Bredbury facility ceased all manufacturing activities in
March 2014 and is held under a long term lease that expires in
2030. The sub-lease is five years in duration with tenant options
to break after three years and to extend for a further five years.
The overall terms of the sub-lease are consistent with the
assumptions underlying the onerous lease provision established in
March 2014 and hence, in addition to the cash flow benefit noted
above, no change to the provision is required at this time.
European Distribution Centre Employee Consultation Process
As part of ongoing initiatives to lower our breakeven point, we
have now commenced formal discussions with our employees on the
future of our loss making European Distribution Centre which is
based near Lille in France. These discussions could result in the
cessation of distribution activities in Lille which currently
employ eight people. Our sales operations in France would be
largely unaffected by any outcome of the consultation process.
Robert Purcell, Chief Executive of Renold plc, said:
"We regret the need to consider further reductions in our
staffing levels and we are working with employees to limit the
impact of these changes. We do, however, remain committed to the
continuing delivery of STEP 2020 and the Group's long term
strategic goals. The sub-let of the Bredbury facility, and the
consultation process announced today, are in line with achieving
those goals."
1 September 2016
ENQUIRIES:
Renold plc 0161 498 4500
Robert Purcell, Chief Executive
Brian Tenner, Finance Director
Arden Partners 020 7614 5917
Chris Hardie
Instinctif Partners 020 7457 2020
Mark Garraway
Helen Tarbet
NOTES FOR EDITORS
Renold is a global leader in the manufacture of industrial
chains and also manufactures a range of torque transmission
products which are sold throughout the world to a broad range of
original equipment manufacturers and distributors. The Company has
a well deserved reputation for quality that is recognised
worldwide. Its products are used in a wide variety of industries
including manufacturing, transportation, energy, steel and
mining.
Further information about Renold can be found on the website at:
www.renold.com
This information is provided by RNS
The company news service from the London Stock Exchange
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