Renold (RNO) – CEO interview – 5 Aug 2022

Paul Scott interviews Robert Purcell, CEO of Renold (RNO).

Disclaimers – this interview is for general information only, and does not constitute any kind of recommendation or advice. Please do your own research. Paul Scott did not charge a fee for this interview, and does not hold shares personally in Renold.

Click here to see Renold’s results presentation slides (pdf file) for FY 3/2022.

Topics covered –

  1. Brief overview of Renold.
  2. Turnaround in recent years.
  3. Sizeable acquisition announced this week in Spain.
  4. Bank debt.
  5. Inflation & pricing power.
  6. Supply chain (no pun intended!)
  7. Pension deficit.
(from Renold website)


  • Very useful interview thank you. RNO remains (very) undervalued on everything from P/E to EBITDA to sales multiples. The Spanish acquisition gives it an ideal EU manufacturing base and fills out its chain business. The pension cash drain is ca. £5m per year, vs EBITDA of ca. £25m. Its financial impact is nowhere near as bad as the market penalises it for. In summary, Renold has excellent engineering reputation, customer base, good control of costs, sound balance sheet and improve P&L and cash numbers. I have picked a number of UK “boring” engineers over the years, all of which got taken over (Chloride, Weir, Fenner, David Brown, recently Ideagen (admittedly different kettle of fish). Renold is another one I will add to any time the price dips below 20p until I am limit long.

  • John Baillie

    Excellent interview with CEO. Renold comes across as a business with a clear strategy for growth in a specialist market.
    Prompted me to top up my existing shareholding. Many thanks to Paul for the interview.

  • One of my major holdings and very happy with the progress shown. Originally I invested as I felt the shares were undervalued. They are even more undervalued now!
    Much appreciate this discussion.

  • Chris Bentley

    Really enjoyed the podcast chat with Robert – I hold RNO. I have enjoyed listening to your interviews, thoughts and detailed insights. Please keep doing them.

  • Excellent and interesting, as a holder these are great Paul.


  • Hi Rob & Adam, Many thanks for the feedback! I don’t know how many people listen, so it’s always nice to hear from listeners who found it useful, that motivates me to do more of them! 🙂
    I’ve just installed a new plugin in WordPress, which should make it easier for anyone t leave comments (apart from pesky Russian spammers, who keep submitting spam comments that I had to weed out manually).
    Best wishes, Paul.

  • Hi Paul, an excellent and very interesting interview with Robert Purcell, covering all 7 topics, which he certainly answered confidently. He comes across as a safe pair of hands for Renold to be in. I am currently a happy holder!
    Thanks to you both for your time.

  • Thanks Paul & of course to Robert. I hold #RNO (initially from c12p & topped up inc after the drop from great results!). So I am conscious of conviction bias. But I do like the style of a podcast interview without powerpoint as a crutch. Love the style of prodding at questions & letting the answers come. Learned some new things & interesting to get the perspective on pension bias. Hope others who dont own will listen & use it as an opportunity to DYOR. Personally at their stage I would rather them invest with their cash rather than pay a divi & then borrow or dilute. Surprised the acquisition didnt start to help a re-rate but it gives me opportunity to continue to build a position. Thanks again!

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