renold plc
renold house
styal road
wythenshawe
manchester m22 5wl
telephone 44 0161 498 4500
fax 44 0161 437 7782
annual report and 
accounts 2008
wwwrenoldcom
delivering
performance
renold plc annual report and accounts 2008
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and sustainable forests and is fsc certified 
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introduction renold plc annual report and accounts 2008
our group our directors corporate
governance
the financial
statements
summary and contents
01 financial highlights
02 at a glance
04 chairman’s statement
05 chief executive’s review
• renold today… and tomorrow
11 financial review
77 corporate details
78 principal subsidiary companies
15 board of directors
16 the directors’ report
21 directors’ remuneration report
26 statement of directors’
responsibilities
27 corporate governance the group financial statements
31 report of the independent auditors
32 accounting policies 
38 consolidated income statement
39 consolidated balance sheet
40 consolidated cash flow statement
41 consolidated statement of 
recognised income and expense
42 notes to the consolidated 
financial statements
67 group five year financial review
the company financial statements
68 report of the independent auditors
69 accounting policies
71 company balance sheet
72 company statement of total
recognised gains and losses
73 notes to the company 
financial statements
this past y ear has been 
a period of geographical
expansion and manufacturing
c ost r eduction w e now ha v e 
a solid pla tf orm to build on
as a business  r enold is well
positioned f ocused and 
set f or gr owth toda y 
and tomorrow 
8536renold ar 2008 coverrevlayout 1  25608  1706  page 2 financial highlights 01 renold plc annual report and accounts 2008
financial highlights
22
operating profit
£ million
percentage increase 200607 to 200708
13
return on sales

percentage increase 200607 to 200708
17
return on capital employed

percentage increase 200607 to 200708
8
sales
£ million
percentage increase 200607 to 200708
200708
120
200607
98
200506
68
200405
46
200708
70
200607
62
200506
44
200405
32
200708
17 4
200607
149
200506
77
200405
47
200708
1726
200607
1593
200506
1550
200405
1432
2008 2007
£m £m
continuing operations
turno v er 1726 1593
operating profit 122 39
operating profit before exceptional items 120 98
profit before tax and exceptional items 91 73
profit before tax 93 14
discontinued operations
profit for the year from discontinued operations 15 135
other information
basic profit per share – group 110p 183p
basic earnings per share – continuing operations 89p 12p
adjusted earnings per share adjusting for 
the after tax effects of exceptional items 
– continuing operations 85p 84p
capital expenditure 82 58
net debt 239 194
8536renold ar 2008 frttplayout 1  25608  1703  page 1 02 at a glance renold plc annual report and accounts 2008
17 
rest of world 
32
rest of europe
33
americas
12
united kingdom
sales – geographical
 europe 44
 americas 33
 china 6
 rest of world 17
at a glance
renold plc is an international engineering group 
producing a wide range of precision engineering
products and application solutions operating 
in nineteen countries worldwide the principal
activities of the group are the manufacture and 
sale of industrial chains and related power
transmission products
 basic industries – mining oil cement steel
 construction – off road vehicles lumber
 infrastructure – waste water plants escalators underground systems power generation
 food – palm oil confectionery  beverages
 manufacturing – oems printing
 t ransport – shipping freight handling aerospace
leisure – theme parks
operating in diverse sectors
6
china
turnover analysis – continuing operations
8536renold ar 2008 frttplayout 1  25608  1704  page 2 at a glance 03 renold plc annual report and accounts 2008
operations by product
renold manufacture a chain for
every imaginable application
heavy duty  high precision
indoor or outdoor  clean or
contaminated high or low
temperature environments
these are all in a days work 
the vast range of roller chains means that
whatever the requirement there is a renold
solution our premier brand renold synergy 
offers unbeatable wear and fatigue
performance whilst the all purpose range of
standard chain provides affordable reliability 
continuous research development
innovation and ingenuity has led to the
production of more specialised solutions such
as hydroservice with its superior corrosion
resistant coating and the syno range which
sets a new benchmark for chains requiring
little or no lubrication in addition to a broad
range of chains involving different materials
and platings there is also a comprehensive
range of attachment chains
conveying applications including theme park
rides water treatment plants cement mills
agricultural machinery  mining and sugar
production all rely on high specification
materials and treatment processes used in
renold conveyor chains lifting chain from
renold also features on 1 in 3 fork lift trucks
produced worldwide
behind every conceivable industry renold is
working hard at delivering performance and
increasing productivity 
r enold
chain
renold couplings offers the 
widest range of coupling
solutions in the world products
ranging from sprag clutches to
fluid couplings are all designed
and manufactured to the 
very highest of international
standards
custom gear spindles and gear couplings 
are supplied to the primary metals industry 
with innovations such as circulating oil
lubrication roll end piloting and compound
tooth curvature keeping renold at the
forefront of the market
the rubber in compression design of
torsionally flexible couplings remains a great
success in the diesel engine market with 
hi t ec couplings serving demanding
applications from steel making to mining 
and power generation
a key to the success of the couplings business 
is its ability to be innovative and harness this
to high levels of technical excellence and
reliability  renold couplings supplies some
very famous names in key industries and
many of these customers are very long
standing clients 
by way of example this part of the company 
has supplied couplings to the large diesel 
marine market for some years these are 
used in a ship’ s propulsion system and must
be utterly reliable because if  for instance 
a tanker carrying crude oil loses its propulsion 
it can rapidly become not only a safety hazard
but also an environmental disaster 
r enold
c ouplings
renold gears also at the
leading edge of technology 
in the power transmission
industry  are world renowned
for their innovative products 
a comprehensive range of right
angle gear units offer ultimate
versatility and durability  
with robust construction for
arduous applications 
the smxtra range of shaft mounted helical 
gear units with the unique renold quick
release bush enables simple installation
whilst other gear hydrostatic variable speed
drive units have a proven reliability in
hazardous environments with high speed
holding accuracies 
renold is an influential innovator providing
bespoke gear solutions across the globe on
escalators lifts in power generation security 
and steel and offering unique design and
manufacturing capability  
it is also worth mentioning that renold 
gears manufactures not only small units but 
also very large gearboxes that can weigh well 
over ten tonnes and be taller than an average
human being they often have to operate 
in extreme conditions and total reliability
is essential 
this part of the company has earned itself 
a very good reputation for finding new
solutions when refurbishing or upgrading
gearboxes and it prides itself on its standards
of after sales service 
r enold
gears
8536renold ar 2008 frttplayout 1  25608  1704  page 3 04 chairman’ s statement renold plc annual report and accounts 2008
looking forward we will continue to focus on cost reduction 
and on extending geographically  thus far  the emphasis has been 
on moving the appropriate manufacturing capacity to lowcost
countries – a strategy which will continue to yield growth in our core
developed market territories in addition now that we are physically
present in these lowcost markets we are in an excellent position to
expand our highly regarded product range into them we estimate
that an annual industrial chain market of £400 million exists in new
territories where we have a current market share of less than 1 the
expansion to new geographies and product gaps will continue to be
pursued via selective infill acquisitions
t o this effect it was announced on 9 june that renold is in
discussions to acquire a 75 interest in the industrial chain business
of lg balakrishnan  bros ltd ‘lgb’ a public company listed on 
the stock exchange in india this business is the market leader for 
the production and distribution of industrial chains in india as well 
as having established exports this will enable renold to promote 
its existing product range into india’s rapidly growing market place
take account of existing export markets as well as exploit new
product market and export opportunities
y our board
barbara beckett will retire from the board at the agm in july  i would
like to thank barbara for her contribution over the last three and a
half years particularly in her role as chairman of the remuneration
committee i would like to welcome john allkins who joined the
board in april 2008 as a nonexecutive director and as chairman 
of the audit committee john is also a nonexecutive director of intec
t elecom systems and was previously group finance director of my
t ravel group plc besides financial skills he has strong international
experience which will be of benefit in the delivery of the group’s
current strategy 
outlook
we enter our next year with a strong sense of purpose but also 
with some caution regarding the outlook for the global economy 
notwithstanding that we operate in diverse geographies and sectors
which are somewhat uncorrelated with each other  we plan to pursue
actively  the considerable opportunities available to us in the rapidly
growing but fragmented emerging markets however  we will maintain
a particularly strong focus this year on cash management and a risk
aversion with our balance sheet as we do this as a consequence the
board has decided to recommend that no dividend be paid but it 
will consider future dividend policy in the light of results from the
business going forward 
additionally  it will remain important in the current year to continue 
to recover  through price increases and improved efficiency  the
inflation we experience in some of our input costs predominantly 
in steel freight and energy  
our order book at the end of the first quarter of the new financial
year is particularly strong and the company is well positioned in its
geographies and markets from this solid starting point i have every
confidence in our ability to perform over the coming year under the
strong leadership of bob davies and his executive team 
matthew peacock
chairman
overview
in this my second year as chairman of your board i am again pleased 
to report that renold has delivered a strong set of results revenue
growth of 8 and a strong increase in operating profit of 22 before
tax and exceptionals have generated basic earnings per share of 110p
compared to a loss per share of 183p a year ago within the strong
allround performance set out in this report the continued delivery 
of the profit and cash enhancement programme p ace plan
announced in march 2007 deserves particular comment at the
period end 46 of our direct labour was in low cost countries
compared to the original p ace target of 40 by march 2009 
this has grown from only 3 two years ago
strategy
we have strengthened the business over the last year  primarily 
via delivering p ace according to plan cost savings cash generation
and capital expenditure targets have been achieved risk reduction
actions on exchange rate exposure and energy prices were concluded
progress was made on tax efficiency  pension funding and unlocking
freehold property value perhaps most significantly  the integration of 
our june 2007 acquisition of chinese chain manufacturer hangzhou
shanshui was successful and capacity has been doubled from 
preacquisition levels at a very attractive capital cost 
chairman’ s statement
matthew peacock
chairman
w e have a strong platform in place
for our next phase of growth
8536renold ar 2008 frttplayout 1  25608  1704  page 4 chief executive’ s review 05 renold plc annual report and accounts 2008
chief executive’ s review
working capital
i am pleased to report that return on capital employed improved 
in the year to 17 from 15 in 200607  the working capital to sales
ratio was maintained at 17 and although inventory increased 
by £7 9 million inventory turns were unchanged
movements in exchange rates added £29 million to inventory which
also increased as a consequence of higher sales volumes and the
increased cost of steel during the year  understandably  working
capital rose as a result of the acquisition of hangzhou and also
because of the buffer stocks manufactured as production was
relocated we will be addressing this through inventory reduction
which will result in cash generation and which will be of particular
focus in the coming year 
renold hangzhou
in june 2007  we completed the acquisition of a 90 interest in
hangzhou shanshui a chain manufacturer based in hangzhou
china 200 kilometres west of shanghai integration has proceeded
well with capacity more than doubled from preacquisition levels and
we now have over 400 employees who are skilled and capable of
maintaining high quality standards the increase in capacity was the
result of both improved operating practices and £2 million of capital
expenditure a large part of this capital expenditure was sourced
locally and represents excellent value for money compared to what 
it would cost if sourced in europe or in the us this important
strategic acquisition underpins and reduces the execution risk of
p ace and provides a major growth opportunity in the domestic
chinese market and into other parts of south east asia
as reported in the media input costs in china particularly steel have
increased rapidly and significantly  we are actively pursuing price
increases and cost reductions in order to offset these increases
potential acquisition in india
renold announced on 9 june on the london stock exchange that 
it is in discussions to acquire a 75 interest in the industrial chain
business of an indian quoted group lg balakrishnan  bros ltd
‘lgb’ lgb has three divisions one of which is a chain division 
we are seeking to acquire all assets of lgb’s chain division other 
than those employed in the manufacture of chains to the automotive
industry  which will be retained by lgb the remainder is the part we
are seeking to acquire this part employs approximately 500 people
involved in the manufacture of transmission chain and conveyor
chain this business is based in t amil nadu india the predominant
reason for this acquisition is an entry into the indian market which 
is one of the fastest growing in the world
this business already the market leader for the production and
distribution of industrial chains in india will provide an established
manufacturing base and sales distribution network this network 
will enable renold to promote its existing product range into india’s
rapidly growing market place in addition the business manufactures
products not currently in our portfolio which can be sold through our
existing sale distribution channels this transaction follows on from
last year’s successful acquisition and integration of renold hangzhou
in china and is part of our strategy for growth into new markets 
if this acquisition concludes this would exceed the revised p ace
target of 60 of the chain direct labour force being in low cost
countries successful completion of the transaction is dependent
upon a number of factors including regulatory and lgb shareholder
approvals which are currently being sought
bob davies
chief executive
our strategy is delivering financial
results in the short term and 
building a platform for long term
profitable growth
overview
i would characterise this year as one of delivering on the challenging
targets set and good progress on our strategic longer term ambitions 
i am very proud of renold’s heritage the patenting of the first
transmission chain and over 100 years experience of establishing 
and maintaining our reputation of superior technology  quality and
customer satisfaction renold today highlights where we are now
capitalising on our heritage coupled with our resolve to be at the
forefront of our industry  renold tomorrow summarises how we 
will maintain and improve on this position in the forthcoming years
at the time of writing we have just announced our planned purchase
of lgb in india which demonstrates our commitment to growth 
in emerging markets and adding value for our customers
results
i am proud that we achieved an 8 increase in sales over the last 
year and this result together with the 22 improvement in the
operating profit before tax and exceptionals means that the p ace
plan is delivering to the bottom line we will continue to cost control
our activities whilst aggressively seeking profitable sales growth
across the world in the many sectors in which we operate
8536renold ar 2008 frttplayout 1  25608  1704  page 5 06 chief executive’ s review renold plc annual report and accounts 2008
renold today 
sales and orders
e arnings
balance sheet and working capital
curr encies
 t wo years ago when we were implementing p ace it was anticipated
that we would focus on cost reduction rather than increasing 
our top line it is therefore pleasing to report that turnover has
increased by 11 in this period despite a strong currency headwind
to contend with at the same time we have seen incoming orders
rise across the group which provides a solid platform going forward
 a key objective of p ace was to improve our operating profits 
and margin compared to two years ago our operating profit 
has increased by 76 to £12 million and the margin moved from
44 to 7 0 it is well known that we have set ourselves an
operating margin of 10 under p ace we remain on course to 
do this despite the tougher economic climate in much of the
developed world during the last twelve months
 at the end of our 2006 year we had net debt of £207 million and 
a gross pension fund deficit of £539 million we currently have 
net debt of £239 million and the pension deficit has been reduced
to £312 million overall we have reduced debt and quasi debt 
by £195 million despite acquiring hangzhou in china last july  
it is fair to say that the balance sheet is now far more robust than
it has been in the past and we are far more in control of our
destiny than was the case only a few years ago having said this
there is still scope for improvement in this area
 we are now a genuinely international company both in terms 
of manufacturing facilities and sales we have had to cope with
significant us weakness in the last two years and the euro 
has also been a concern from time to time it is therefore pleasing
to report that our strong focus on currency hedging and use of
‘low cost’ production centres for manufacturing have produced
tangible positive results 
chief executive’ s review
continued
8536renold ar 2008 frttplayout 1  25608  1704  page 6 chief executive’ s review 07 renold plc annual report and accounts 2008
and tomorrow
our key objectives are
w e will achieve this through
 we have made an acquisition in china and plan to acquire in india and intend 
to increase our geographical footprint particularly in south america where we
are currently under represented w e intend to increase our activity in developing
countries particularly those that offer both domestic and export opportunities
 it is vital that we optimise our manufacturing base in order to remain
competitive and profitable our recent acquisitions go a long way to
addressing the issue but there is still more to do in this area we have 
placed great emphasis on improving logistics and this is another priority 
for us moving forward
 renold has always had a reputation for innovation and we intend to
continue to build on this in order to maintain and increase our advantage 
in application solutions this is where the ‘added value’ lies in our industry  
at the same time we intend to maintain and build on our technology
leadership which is well recognised by customers 
 we have set targets for improving our return on sales and return on 
assets which we are well on the way to achieving however  we operate 
in a competitive environment so we must continue to pay close attention 
to costs and reap the full benefits of ‘low cost’ production particularly as
certain raw material prices have risen sharply in recent times our increased
global footprint will grow even more 
 a policy of selective acquisitions that will further increase and improve 
our geographical and product footprints as well as raising group turnover
and profitability 
 placing even greater emphasis on our technological leadership as well as
raising the quality of our solutions and customer service to yet higher levels
 ongoing attention to costs has been a central theme of the p ace plan and
this will continue to be key looking ahead with controls now in place that
have already proved to be effective in reducing risks to profitability 
 getting even closer to having a manufacturing base that optimises
production of our products worldwide the much greater emphasis now 
put on ‘low cost’ production whilst still maintaining quality  is central to
improving our profitability in future years
 setting targets for our operating margin and return on capital employed
which are attainable based on our action plans set out above being
executed as expected 
8536renold ar 2008 frttplayout 1  25608  1704  page 7 08 chief executive’ s review renold plc annual report and accounts 2008
chief executive’ s review
continued
renold has maintained its
technology leadership through 
the design and development of
products to solve some of the major
problems faced in industry today 
service
the world is becoming a smaller place and increasingly competitive
so renold has a product offering covering the spectrum of needs 
from solution products at one end to utility products for less exacting
applications at the other  in all cases the need for excellent service 
is paramount and a global supply chain organisation has been created
in order to ensure that this expectation is fully met the goals of
improving ontime delivery  quality and cost have been key objectives
as this year we intend to keep ongoing focus on these areas particularly
with the increased volatility of raw material supply and costs
witnessed in recent times
organisation
our organisation has been changed to meet our growth ambitions
and the need to be able to best manufacture wherever in the 
world we have developed and implemented global supply chain
organisation which will ultimately have the responsibility for
manufacturing efficiency and customer fulfilment within our chain
factories this will give us the capacity and capability to be responsive
and flexible to our current and new customer needs 
gears and couplings
the gears and couplings business continues to have good sales 
and profit growth this growth is being driven by the steel mining
power generation and transportation industrial sectors in which they
operate their highly engineered products are valued by customers
across the world particularly in china europe africa and the usa the
contract with alstom for the mass transit system in the state of new
y ork has been extended and will generate 14 million sales over the
next 18 months following the acquisition of renold hangzhou we
have consolidated the manufacture in china of chain products and
components there the beicai facility in shanghai is now devoted to
the manufacture of gears and couplings products and components
this gives this business access to local markets and a lower cost of
manufacture
we have a clear strategy and a track record of delivering performance
the renold team is capable and enthused to meet our strategic
ambitions we look forward with confidence to another 
successful year 
bob davies
chief executive
pensions
considerable progress has been made during the year through 
asset management activities in particular  a more progressive asset
management policy has been agreed and implemented leading to 
a more diverse and less correlated portfolio the net uk pension
deficit has reduced to £68 million march 2007 – £197 million this
reduction has arisen in part due to the discount rate increasing to
66 as a result of market interest movements we are aggressively
looking at options to minimise risk going forward
the gross pension deficit of £312 million at 31 march 2008 shows 
a decrease of £168 million from £480 million at 31 march 2007  
burton property
the sale of the burtonupont rent property was concluded in 
january 2008 and the gross proceeds of £64 million were used to
reduce net debt and realised a profit of £26 million which is reported
as an exceptional item this was a key element in the funding of 
the p ace plan
t echnology
renold has maintained its technology leadership through the 
design and development of products to solve some of the power
transmission issues faced in industry today resulting in building
strong relationships with both oems and end users these ‘solution
products’ are aimed at achieving high performance low maintenance
and harmony with the environment renold synergy has been 
a flagship product for several years offering unsurpassed
performance in highly demanding environments but for applications
where oil free operation is needed such as the food industry  a range
of products known by the ‘renold syno’ brand are offered in addition
‘renold hydroservice’ has gained in popularity in applications where
resistance to corrosion is a priority  renold has invested in a range 
of ‘smartlink’ products developed to give visibility of the actual loads
and wear in a chain drive system this has enabled many customers
to improve and optimise their own products the innovative approach
to chain engineering has led to strong technical ties with major
global oems renold has continued to invest in engineering in the 
last year including the addition of a state of the art rd facility 
in china and an innovation centre in the uk we intend to make
further investments in the coming year 
8536renold ar 2008 frttplayout 1  25608  1704  page 8 chief executive’ s review 09 renold plc annual report and accounts 2008
dartford creek flood defence system
chain monitoring knows no barriers
renold’ s ingenuity and solution capability were
called upon to overcome the technological
demands involved in manufacturing a massive
chain to be used in the raising and lowering of
barriers at the dartford creek flood defence
system this system is part of several including the
thames barrier  that protect london from flooding 
keeping plant and machinery running smoothly is becoming
increasingly sophisticated particularly on heavyduty applications
in less demanding applications the wear of components is largely 
a constant and predictive maintenance keeps machinery running
smoothly  it is different on arduous applications where plant and
machinery operates at the extremes of tolerances 
the dartford barrier is made up of two towers each almost 100 feet
high that stand aside the darent tributary river  between them 
are sections of barrier that are lowered into place sequentially to
form a defensive wall against high tides the chain that drives the
mechanism is massive over 90 metres in length it weighs 
13 tonnes with a breaking load of 285 tonnes this chain is tough 
for as well as having to bear huge loads when the enormous
sections of barrier are raised and lowered parts of it have to endure
spending significant amounts of time submerged underwater 
manufactured in the uk the high specification chain was made
specifically for purpose the 65 inch pitch links have grease nipples 
so that lubricant can be applied directly to the link to create 
a protective layer between the pin bush and roller  
the chain is also completely coated in grease to protect it from
corrosive elements it is also monitored at regular intervals by
smartlink the latest in chain monitoring technology from renold
careful monitoring is paramount components pushed to the 
limits could if left undetected lead to premature wear or even
catastrophic failure however knowledge of these factors enables
maintenance engineers to be proactive 
smartlink consists of a strain gauge linked to a microprocessor
which collects data about the stresses and forces the chain is
exposed to during the lowering and raising of the barrier  
the smartlink units are connected to the chain’s side plates and 
the information collected can be downloaded to a handheld 
device and analysed 
it was discovered that the friction caused by the mechanism of the
gates being opened and closed was higher than anticipated causing
the chain to experience loads towards the upper end of its calculated
working limit under extreme conditions by establishing this fact
prior to the chain being damaged the maintenance team were able
to reduce friction levels and thus the loading on the chain
the most sophisticated version of smartlink as fitted on the
dartford barrier is capable of collecting a wide range of data 
and is often used where there are unresolved issues or on safety
critical applications 
the dartford creek barrier solution represents an excellent example
of renold’s ability to provide innovative and technologically capable
bespoke solutions satisfying customers’ requirements however
critical the application arduous the conditions and specific the need 
8536renold ar 2008 frttplayout 1  25608  1704  page 9 10 chief executive’ s review renold plc annual report and accounts 2008
screw down gearboxes
innovative solution from renold gears
screw down gears for an asian customer are the
largest ever made another innov ative solution
from r enold gears is further proof that the
company has a diverse range of talent when it
comes to solving problems for customers 
during the year under review renold gears completed the
manufacturing of the heaviest pair of worm wheel gearboxes 
in the company’s history at its site in milnrow near rochdale 
with a combined weight approaching 25 tons these huge
gearboxes were ordered by a customer in asia this alone is proof
that renold’s reach and reputation is genuinely international 
designed and manufactured to be installed in an existing steel mill
the gear units are to be fitted as the main drives of a screw down
mechanism which is used to reform recently cast steel billets into
thinner width sections the screw down gear units are driven by
massive 220kw motors and literally squeeze the steel into the
required section widths
the units are a single reduction worm gear design with a reduction
ratio of 2151 and designed specifically for the application with 
a huge tooth thickness to withstand in excess of 530000 nm 
of static torque 
they are manufactured in pairs and are identical externally but
internally the gears are cut with opposite angle gearing known as
left and right hand threads this gives the desired effect of giving
opposite direction of rotation of the output when both units’ inputs
are driven in the same direction
renold gears has manufactured and supplied many similar screw
down gear drives in the past and also supplied specialised worm
gears to customers who have built them into their own gearboxes
where sudden and huge shock loads are going to be encountered
only worm wheel sets manufactured with the maximum tooth
width are suitable in addition only the combination of hardened
steel worm shafts and ‘soft’ phosphor bronze worm wheels 
allow these loads to be withstood with no detrimental effect 
on service life
the division’s capability to undertake complete custom made
systems designed to meet the customer specifications has enabled
renold gears to continue to win these types of contracts in diverse
markets around the world
8536renold ar 2008 frttplayout 1  25608  1704  page 10 financial review 11 renold plc annual report and accounts 2008
overview
the financial statements of the group have been prepared in
accordance with international financial reporting standards ifrs 
as adopted by the european union 
the financial statements of the parent company  renold plc have
been prepared under uk generally accepted accounting principles
uk gaap and are included on pages 68 to 76
continuing operations
revenue
the revenue from continuing operations increased by 8 to 
£1726 million sales in the second halfyear  at £905 million were 
10 higher than in the first half
operating profit
operating profit before exceptional items was £120 million up 22
on 200607  return on sales
1
for continuing operations for the year
before exceptionals was 7 0 compared with 62 for last year  this
demonstrates a continuing recovery in margins which now extends
for six consecutive halfyear periods we expect this trend to continue
exceptional items were £02 million credit compared with 
£59 million charge in 200607  £24 million redundancy and
restructuring costs incurred mainly in the european chain operations
were offset by £26 million profit recognised on the sale of the 
burton property 
further details of the exceptional items are given in note 2c 
to the financial statements
financing costs
t otal net financing costs increased to £29 million 2007 – £25 million
net bank interest cost rose to £26 million 2007 – £24 million due 
to the increased libor borrowing rates in the period amortisation 
of costs associated with the rebanking in february 2007 were 
£02 million 2007 – £02 million the net interest cost on pension
plan balances and the expected return on pension plan assets was 
a charge of £01 million 2007 – credit £01 million
profit before tax
profit before tax and before exceptional items was £91 million
compared with £7 3 million last year  profit before tax after
exceptional items was £93 million compared £14 million in 200607 
t axation
the tax charge on continuing operations of £31 million 
2007 – £06 million represented an effective rate of approximately
33 7 less than that reported in 200607 and a continuation 
of the downward trend
discontinued operations
the automotive and machine t ools businesses were divested 
in 200607  in 200708 £015 million deferred consideration 
on the sale of the machine t ool business received in may 2008 was
recognised the remaining £135 million deferred consideration will
also be recognised when received £15 million of net provision in
relation to claims on various warranty matters were released in
200708 following settlement of the claims 
group results for the financial period
the profit for the year was £7 7 million compared with a loss of 
£127 million in 200607 the basic earnings per share was 110p 
2007 – 183p loss and the diluted earnings per share was 108p 
2007 – 181p loss the basic adjusted earnings per share from
continuing operations before exceptional items was 85p 2007 – 84p
balance sheet
net assets at 31 march 2008 were £410 million 2007 – £239 million
the liability for retirement benefit obligations was £312 million 
2007 – £480 million before allowing for a net deferred tax asset 
of £48 million 2007 – £111 million of the £312 million obligation
£198 million arises in respect of nonuk unfunded schemes which 
do not require to be prefunded see pensions below the uk pension
schemes deficit net of deferred tax has reduced to £68 million 
2007 – £197 million
financial review
hit ec rubberincompression coupling
providing failsafe operation and protecting men and
equipment in mining applications across the world
1 being operating profit before exceptional items on revenue from continuing
operations
8536renold ar 2008 frttplayout 1  25608  1704  page 11 12 financial review renold plc annual report and accounts 2008
the group treasury policy  approved by the directors is to manage 
its funding requirements and treasury risks without undertaking 
any speculative risks note 26 to the financial statements provides
details of financial instruments 
the group maintains a mix of short and mediumterm facilities to
ensure that it has sufficient available funds for ongoing operations
a major exposure of the group earnings and cash flows relates to
currency risk on its sales and purchases made in foreign non
functional currencies t o reduce such risks these transactions are
covered primarily by forward foreign exchange contracts such
commitments generally do not extend more than 12 months beyond
the balance sheet date although exceptions can occur where longer
term projects are entered into
t o manage foreign currency exchange risk on the translation of net
investments certain dollar denominated borrowings taken out in 
the uk to finance us acquisitions have been designated as a hedge 
of the net investment in us subsidiaries the carrying value of these
borrowings at 31 march 2008 was £65 million 2007 – £64 million
borrowings issued at variable rates expose the group to cash flow
interest rate risk and borrowings issued at fixed rates expose the
group to fair value interest rate risk the group reviews the mix of
fixed and floating debt and has interest rate swaps to manage part 
of this exposure
at 31 march 2008 the group had 20 2007 – 19 of its gross debt 
at fixed interest rates cash deposits are placed shortterm with 
banks where security and liquidity are the primary objectives the
group has no significant concentrations of credit risk with sales made
to a wide spread of customers industries and geographies policies
are in place to ensure that credit risk on individual customers is kept
to a minimum
cash flow and borrowings
operating cash inflow from continuing operations was £45 million
2007 – £103 million 
operating cash inflow from discontinued operations was £nil 
2007 – £47 million outflow
payment for purchase of property  plant and equipment was 
£7 5 million 2007 – £60 million including £15 million related to
discontinued activities proceeds of disposals of property  plant 
and equipment and assets held for sale burton were £7 1 million
2007 – £02 million 
group net borrowings at 31 march 2008 were £239 million 2007 –
£194 million comprising cash and cash equivalents £155 million
2007 – £203 million and borrowings including preference shares 
of £394 million 2007 – £397 million
acquisition
in june 2007 we completed the acquisition of a 90 interest in
hangzhou shanshui for £24 million the existence of put and call
options over the remaining 10 shareholding retained by the vendors
requires us to account for the £05 million contingent consideration 
as a provision and not to report a minority interest goodwill arising
on acquisition is £12 million further details are shown in note 27 
treasury and financial instruments
in february 2007 the group entered into a three year syndicated bank
facility led by the royal bank of scotland plc with fortis bank san v 
as a participant this facility is the group’s principal credit facility 
although it does maintain facilities and relationships with a number
of other banks in the territories in which it operates
financial review
continued
renold factory  hangzhou china
the 250000 sq ft manufacturing facility is the second
largest in the group and is now fully operational
8536renold ar 2008 frttplayout 1  25608  1704  page 12 financial review 13 renold plc annual report and accounts 2008
renold couplings
wins prestigious mass transit contract
in november 2007 renold couplings won 
a us 14 million contract to supply rail traction
gearboxes and couplings to alstom for trains
ordered by the new y ork city t ransit authority
ny ct the contract is phase two of a three phase
schedule and is expected to be fulfilled over 
an 18 month period commencing in may 2008
product innovation and reliability were major contributing factors 
to renold being chosen to supply alstom for the trains ordered by
the nyct destined for operation on the famous new y ork subway 
nyct is the largest subway fleet operator and one of the most
extensive and complex public transportation systems in the world
each day  more than seven million people use the new y ork subway
and this equates to over 15 billion customers annually  the alstom
cars will represent a major upgrade to nyct’s fleet and will be
equipped with several hitech customer amenities 
the couplings are being fitted on the new r160 series trains
destined for operation on the famous subway  the r160 cars will 
run on the highest traffic areas of the system so reliability is an
essential factor in design and manufacture
the new gearboxes and couplings are fitted inbetween the 
ac traction motor and the drive axle they allow the safe
transmission of torque while the motor and gearbox shafts are
misaligned vertically and horizontally  by up to 45 degrees
renold has a long supply history with nyct and many other 
us transit authorities dating back over 45 years renold’s couplings 
are extremely robust in design have an excellent service history  
and the major subway car builders such as kawasaki alstom 
and bombardier have all used renold couplings in their propulsion
systems with proven success renold couplings offers the widest
range of coupling solutions in the world products ranging from
sprag clutches to fluid couplings are all designed and manufactured
to the very highest of international standards 
once again renold’s ability to find innovative solutions for
customers is a recognised strength by the leading mass transit
rolling stock manufacturers 
8536renold ar 2008 frttplayout 1  25608  1704  page 13 14 financial review renold plc annual report and accounts 2008
financial review
continued
pensions
information on the group’s pension schemes is set out in note 19 
to the financial statements including the key assumptions used 
by the actuary in arriving at the ias 19 funding position
the gross pension assets and liabilities and resulting deficits are 
as follows
2008 2007
assets liabilities deficit assets liabilities deficit
£m £m £m £m £m £m
uk schemes 
– funded 1585 1680 95 1644 1925 281
overseas schemes
– funded 152 171 19 151 17 0 19
– unfunded – 198 198 – 180 180
1737 2049 312 1795 227 5 480
deferred tax asset 48 111
net 264 369
during the year  the assets of the funded schemes fell by £58 million
the funding deficit improved further  however  as total liabilities
decreased by £226 million reflecting actuarial gains due primarily
from increased bond rates with the rate used for discounting uk
liabilities rising from 54 to 66
the overseas deficit comprises £19 million 2007 – £19 million in
respect of funded defined benefit schemes and £198 million 2007 –
£180 million relating principally to the unfunded german scheme
which as is common in germany  is a ‘pay as you go’ scheme which 
is not required to be prefunded there is no obligation for deficit
funding payments for this type of scheme 
there are three uk defined benefit pension schemes i the main
scheme which is the renold group pension scheme rgps ii the
renold supplementary pension scheme rsps and iii the jones 
 shipman plc retirement benefit plan js 
the status of these schemes at 31 march 2008 is summarised below
rgps rsps js t otal
as at 31308 £m £m £m £m
ias 19 liabilities 1083 291 306 1680
market value of assets 1020 265 300 1585
deficit on ias 19 basis 63 26 06 95
annual deficit reduction payment 
based on funding valuations 22 07 02 31
t otal members approx 5109 117 1040 6266
of which active are 415 8 1 424
further details on the group’s pension schemes are given in note 19
to the financial statements 
peter bream
finance director
escalator drives
escalators found around the world are driven using chain drives
and are connected to the output shaft of large wormgear units 
8536renold ar 2008 frttplayout 1  25608  1704  page 14 board of directors 15 renold plc annual report and accounts 2008
board of directors
1 matthew peacock 
chairman
matthew aged 46 was appointed to the board and became
chairman in september 2006 he is the cofounder of hanover
investors a specialist turnaround investment firm based in london
prior to hanover  matthew ran the international ma team in
london at barclays de zoete wedd having previously worked in 
new y ork for credit suisse first boston matthew is also a non
executive director of smg plc cosalt plc and is a nonexecutive
director of fairpoint plc
2 robert bob davies
chief executive
bob aged 54 joined the group in march 2004 and was appointed
chief executive in april 2004 a member of the institute of electronic
engineers he was previously chief executive of druck holdings plc
and prior to that held a number of senior management positions 
in the lucas group and at general electric in both the uk and usa
3 peter bream 
finance director
peter  aged 41 joined the group in july 2006 and was appointed
finance director in september 2006 he was finance director of
provalis plc a uk listed company  for three years until march 2006
prior to joining provalis peter was a divisional finance director for 
api group plc peter is a chartered accountant and has an engineering
degree from cambridge university 
4 barbara beckett 
nonexecutive director 
barbara aged 54 was appointed to the board in march 2005 
she was the group marketing director of baa ltd and has extensive
experience throughout the retailservice industries she has had
operations management experience with several major companies
including bt plc barbara will be retiring at this year’s agm
5 rod powell
nonexecutive director
rod aged 60 was appointed to the board in september 2006 
a chartered management accountant a chartered engineer and
partner in r j investments rod was formerly chief executive of the
control systems division of invensys rod is also a director of cosalt
plc plasmon plc hanover investors limited and dust networks inc 
a privately held us company
6 david shearer
senior independent nonexecutive director
david aged 49 was appointed to the board in may 2007 as the 
senior independent nonexecutive director  a corporate financier 
and a former senior partner in deloitte  t ouche where he was a uk
executive board member  david is chairman of crest nicholson plc
he is also senior independent director of smg plc and superglass
holdings plc a nonexecutive director of mithras investment t rust plc
aberdeen new dawn investment t rust plc martin currie holdings
limited and scottish financial enterprise and a governor of the
glasgow school of art he was previously a nonexecutive director 
of hbos plc
7 john allkins
nonexecutive director 
john aged 58 was appointed to the board and to the chair of the
audit committee in april 2008 he is also a nonexecutive director 
of intec t elecom systems plc and was previously group finance
director of myt ravel group plc prior to that he held a number 
of finance director roles in bt
1
2
3
4
5
6
7
8536renold ar 2008 frttplayout 1  25608  1704  page 15 16 the directors’ report renold plc annual report and accounts 2008
the directors’ report
this is the directors’ report and the audited financial statements for the year ended 31 march 2008
our group
renold plc the “company” and its subsidiaries together the “group” is an international engineering group producing a wide range 
of precision engineering products operating in 19 countries worldwide
the group’s principal activities are the manufacture and sale of industrial chains and related power transmission products
business review and future developments
a review of the business and future developments of the group together with a description of the principal risks and uncertainties affecting
the business is set out in the directors’ report on page 16
results
our profit for the year before tax from continuing operations was £93 million compared with a profit of £14 million for the previous year  
the profit for the year  taking into account discontinued operations is £7 7 million 2007 – a loss of £127 million
kpis
performance in the current and prior years is summarised as follows
2008 2007
operating profit before exceptional items £120 million £98 million
return on sales 70 62
working capital as a percentage of sales 17 17
low cost countries direct labour 46 12
adjusted eps
2
85 pence 84 pence
the group monitors the performance of its business through detailed monthly operational and financial reporting with comparisons to
budgets and updated forecasts being routinely made in addition the group maintains regular reviews and dialogue with the management
of each of the group’s businesses
at board level the most important key performance measures are
• operating profit before exceptional items
• return on sales being operating profit before exceptional items as a percentage of sales
• working capital as a percentage of sales being net working capital as a percentage of sales
• low cost country direct labour  being a percentage of direct employees in low cost countries and
• adjusted eps being basic eps adjusted for the after tax effects of exceptional items
our directors
directors
the directors’ biographical details can be found on page 15 all directors except john allkins were directors throughout the year 
at the 2008 annual general meeting barbara beckett will retire bob davies and peter bream will retire and offer themselves for reelection
by shareholders and john allkins will offer himself for election for the first time in accordance with the company’s articles of association
directors’ interests
details of the interests of our directors and their connected persons in our share capital and in options held under share option schemes
along with any changes in such interests since the end of the year  are detailed in the directors’ remuneration report on pages 21 to 25 
no director had any interests in contracts of significance in relation to the company’s business during the year 
directors’ and officers liability insurance
we maintained liability insurance for our directors and officers throughout the year 
no qualifying third party indemnity provision or qualifying pension scheme indemnity provision was in force when this directors’ report 
was approved or was in force during the year 
going concern
after making enquiries we the directors have a reasonable expectation that the group has adequate resources to continue in operational
existence for the foreseeable future we therefore continue to adopt the going concern basis in preparing the financial statements
directors’ statement as to disclosure of information to auditors
those directors who were members of the board at the time of approving this directors’ report are listed on page 15 having made enquiries
of the company’s auditors each of our directors confirms that
• to the best of their knowledge and belief there is no information relevant to the preparation of the reports of which our auditors are
unaware and 
2 being basic eps from continuing operations before exceptional items after tax
8536renold ar 2008 acctstplayout 1  25608  1705  page 16 the directors’ report 17 renold plc annual report and accounts 2008
• they have taken all the steps a director might reasonably be expected to have taken to be aware of relevant audit information and 
to establish that our auditors are aware of that information
our employees
as at 31 march 2008 the group employed 2536 people including 697 in the uk
employment policies 
arrangements for consulting and involving our employees on matters affecting their interests at work and informing them of the
performance of their employing business and the group are developed in ways appropriate to each business a variety of approaches 
is adopted aimed at encouraging the involvement of employees in effective communication and consultation and the contribution of
productive ideas at all levels
our employment policies are designed to provide equal opportunities irrespective of race caste national origin religion age disability 
gender  marital status sexual orientation or political affiliation
our policy is to ensure that disabled applicants for employment are given full and fair consideration and that existing disabled employees 
are given equal access to training career development and promotion opportunities in the event of existing employees becoming disabled
we would explore all reasonable means to achieve retention in employment in the same or an alternative capacity 
uk pension schemes
our uk pension schemes are largely defined benefit type schemes with assets held separately from those of the group in trustee
administered funds managed by independent managers under the terms of their management agreements the investment managers 
of the schemes’ assets are not permitted to invest in the securities of renold plc the boards of t rustees of the principal schemes include
employee representatives
in april 2002 the renold group pension scheme and the jones  shipman plc retirement benefits plan 1971 were closed to new entrants
subject to appropriate transitional arrangements for existing eligible employees being put in place and a defined contribution scheme was
established as from that date 
neither our chairman nor our chief executive is a t rustee of the defined benefit or the defined contribution schemes an independent t rustee
company has been appointed to provide an individual to act as chairman of the board of t rustees of the principal schemes
our shares
share capital 
details of our share capital and any changes during the year are set out in note 20 to the financial statements on page 58
major shareholders
as at the close of business on 30 may 2008 we had been notified of the following interests in voting rights attached to shares or financial
instruments under disclosure and t ransparency rule 5 no major shareholder had any interest in derivatives or financial instruments relating
to shares carrying voting rights that are linked to the company’s shares
 of total 
number of number of 
shareholder voting rights voting rights
hanover i master fund lp 12937 500 1847
prudential plc 8910240 1272
svg investment managers limited
3
5990511 855
henderson global investors 5050000 7 21
lowland investment company plc 4650000 664
aberforth partners llp 4771200 681
dividends
details about our dividend policy are set out in the chairman’s statement on page 4
preference dividend payments were made on 1 july 2007 and 1 january 2008
directors’ rights in respect of shares
the directors are authorised to issue equity securities for cash either by way of rights issue or in any other way  provided that the shares issued
other than by way of rights issue open offer or other preemptive offer or under the various 2004 share and share option schemes of the
company be limited to shares with a nominal value of £870747  being equal to 5 of the aggregate nominal amount of the company’s
ordinary share capital currently in issue the authority will expire at the next agm on 30 july 2008
in addition the directors have authority to allot shares up to a maximum nominal amount of £5804983 representing approximately one
third of the issued share capital at the date of passing of the relevant resolution this authority will expire on 30 july 2008 
3 this shareholding includes 2950415 421 of rights attaching to shares held by strategic equity capital limited
8536renold ar 2008 acctstplayout 1  25608  1705  page 17 18 the directors’ report renold plc annual report and accounts 2008
the directors’ report
continued
finance
financial instruments
our financial risk management objectives and policies and our exposure to risk including credit risk are discussed in the financial review 
on pages 11 to 14 in the directors’ report and in the notes to the accounts on pages 62 and 63
policy on payment of suppliers
under the supervision of the head office individual operating businesses are responsible for agreeing the terms and conditions under which
transactions with their suppliers are conducted including the terms of payment it is our group policy that payments to suppliers are made 
in accordance with these terms provided that the supplier complies with all relevant terms and conditions
as at 31 march 2008 trade creditors of our businesses in the uk and overseas represented 66 days’ purchases compared with 65 last year 
donations
during the year  we made no contributions to uk organisations for charitable purposes nor any political donations
post balance sheet event
in june 2008 renold continental limited committed to sell the freehold of an office building located in brussels for proceeds expected to be
approximately £15 million the anticipated profit on this disposal is estimated to be approximately £07 million
our principal risks and uncertainties
risk is inherent in our business activities we take steps at both a group and subsidiary level to understand and evaluate potential risks and
uncertainties which could have a material impact on our performance in order to mitigate them accordingly  a risk aware environment is
promoted and encouraged throughout the group details of the principal risks and uncertainties are set out below
external market
economic and political risks
we operate in 19 countries and sell to customers in many more including china while benefiting from the opportunities and growth in these
diverse territories we are necessarily exposed to the economic political and business risks associated with international operations such as 
a global recession sudden changes in regulation imposition of trade barriers and wage controls security risk limits on the export of currency
and volatility of prices taxes and currencies our diversified geographic footprint mitigates against exposure within any one country in which
we operate although we are still exposed to global events
raw material prices
this year has seen volatility to the price of raw steel movements in steel prices are driven by global market conditions outside the control of
the group where contractually possible we pass price increases onto our customers this action could potentially impact customer retention
acquisitions
in addition to organic growth we believe that strategic acquisitions are key to delivering both our long and shortterm strategy  acquisition
brings with it risk from the inappropriate selection of a target company  to post acquisition transition and integration issues the group has
in place a management team which understands and works to mitigate these risks and uses external advisers where appropriate
operational 
health safety and the environment
revision of environmental legislation in various countries takes time and we monitor this at a local level in order to anticipate the effect on
our businesses and customers unforeseen legislative changes may increase manufacturing costs but we believe that they can also drive
change to make operations more efficient
product liability and warranty claims
as a result of the nature of the products manufactured we face the inherent business risk of exposure to product failure and warranty claims
in the event that a product fails in order to mitigate these risks where possible we maintain product liability and product recall insurance 
in order to mitigate the risk of warranty claims for property damage or consequential losses we have adopted a policy of contractually
limiting liability  where possible
financial 
liquidity
in the present economic climate all companies face risk in relation to the availability of debt to fund their ongoing operations in order to
manage this risk the group maintains a mix of short and mediumterm facilities to ensure that it has sufficient funds available its main
facility is committed until february 2010 cash deposits are placed shortterm with banks where security and liquidity are the primary objectives
8536renold ar 2008 acctstplayout 1  25608  1705  page 18 the directors’ report 19 renold plc annual report and accounts 2008
foreign exchange risk
the group has operations in 19 countries and sells into many more with the result that two forms of currency risk transactional and
translational exposure arise
transactional exposure – a major exposure of the group earnings and cash flows relates to currency risk on its sales and purchases made 
in foreign nonfunctional currencies t o reduce such risks these transactions are covered primarily by forward foreign exchange contracts
such commitments generally do not extend more than 12 months beyond the balance sheet date although exceptions can occur where
longerterm projects are entered into
translational exposure – t ranslational exposure arises due to exchange rate fluctuations in the translation of the results of overseas
subsidiaries into sterling t o manage foreign exchange currency risk on the translation of net investments certain dollar denominated
borrowings taken out in the uk to finance us acquisitions have been designated as a hedge of the net investment in us subsidiaries 
interest rates
borrowings issued at variable rates expose the group to cash flow interest rate risk and borrowings issued at fixed rates expose the group to
fair value interest rate risk the group reviews the mix of fixed and floating debt and has interest rate swaps to manage part of this exposure
pensions
estimates of the amount and timing of future funding obligations for the group’s pension plans are based upon a number of assumptions
including future longterm corporate bond yields the actual and projected performance of the pension plan assets legislative requirements
and increased longevity of members in the last year  increased bond yields have reduced the deficit the group continually reviews risks in
relation to the group’s pensions and takes action to mitigate where possible while the group is consulted by the trustees on the investment
strategies of its pension plans the group does not have direct control over these matters as trustees are responsible for the pension strategy 
our approach to corporate social responsibility
we believe that consideration of corporate social responsibility is integral to ensuring the protection of the long term interests of our
shareholders
the board has overall responsibility for corporate social responsibility  including environmental policy  health and safety matters with the
chief executive taking leadership responsibility with direct lines of reporting from operational facilities and the supply chain and it director 
who is responsible for the management of group health  safety 
environmental policy 
we are committed to managing our activities so as to provide proper levels of care and safety for the environment and for our customers and
employees in particular  we seek to develop and manufacture products so as to minimise their environmental impact as far as practicable 
to cooperate with industry  government bodies suppliers and customers to develop and achieve improved standards of environmental care
and to conduct our operations in compliance with relevant statutory provisions concerning environmental matters
in line with this policy  local management is responsible for ensuring that appropriate systems are implemented maintained and monitored
in the areas for which they are responsible each business has issued a local environmental statement which complies with group policy and
local legislation the case studies below show the way in which local management has progressed environmental initiatives
case study 1
jeffrey chain lp morristown put in place two energy saving initiatives in 2007
office lighting was converted from old fluorescent light fixtures with magnetic ballast to new t8 fluorescent fixtures each new 
fourbulb light fixture saves 117 watts the annual energy saving resulting from this initiative equates to a cost of 10268 per year 
the plant cooling tower required replacement in 2007  t o incorporate energy reduction into the project variable speed drives were 
purchased for the fan and pump motors by slowing the fan and pumps down to match actual plant requirements significant energy
savings were realised this initiative reduced the annual energy cost by 11959 
8536renold ar 2008 acctstplayout 1  25608  1705  page 19 20 the directors’ report renold plc annual report and accounts 2008
the directors’ report
continued
case study 2
renold continental limited belgium
our belgian facility achieved the accolade of an “ecodynamic company in brussels” from the brussels environmental institute with a 
twostar grading for the second time this is in recognition of its voluntary commitment to improve environmental performance and 
to set up environmental management systems 
the achievement was in recognition of the fact that it has reduced the use of heating oil by 14 and electricity by 8 since 2003 by
optimising the thermostatic regulation of the heating system through regular maintenance and by encouraging energysaving behaviour  
case study 3
renold power transmission limited bredbury  uk
a centrifuge machine has recently been purchased that has allowed the bredbury site to recycle water from an existing process 
this has resulted in reduced water usage of around 20m3 per day and substantial cost savings on waste disposal and chemical usage
in addition the bredbury site has commissioned an energy survey funded by the carbon t rust which recommended various energy 
saving measures the site is in the process of implementing a number of the recommendations
health  safety policy
as a global group operating in 19 countries we have a high level of concern for the health  safety of our employees contractors 
customers and neighbours as a result we actively work with local management to identify areas where improvements and efficiencies 
can be made 
the board regularly reviews health and safety performance 
research and development
innovation is key to the future success of our group and to the delivery of long term value for our shareholders our research and
development activities continue to be principally directed towards the development of new products and manufacturing methods 
together with the improvement of performance and cost effectiveness of our existing products 
our contracts
change of control provisions
the company’s main uk facilities agreement with the royal bank of scotland and fortis bank san v contains a change of control provision
this requires the company to provide notification to the agent in the event of a change of control the banks may then demand cancellation
and repayment of the commitments and the loans
no other material contracts contain change of control provisions there are no agreements between the company and its directors or
employees providing for compensation for loss of office or employment whether through resignation purported redundancy or otherwise
that occurs because of a takeover bid
by order of the board
lindsay beardsell
company secretary
24 june 2008
8536renold ar 2008 acctstplayout 1  25608  1705  page 20 directors’ remuneration report 21 renold plc annual report and accounts 2008
directors’ remuneration report
4 renold’s annual report for 200607 incorrectly stated that bob davies’ remuneration for 200607 was £278000
this remuneration report has been prepared on behalf of the board and is subject to the approval of shareholders at the annual general
meeting agm on 30 july 2008
remuneration committee and advisers
the company’s remuneration committee determines on behalf of the board and within agreed terms of reference set by the board the
overall remuneration packages for the executive directors and the chairman the members of the committee currently comprise the
independent nonexecutive directors barbara beckett chair matthew peacock rod powell and david shearer  none of whom has any
personal financial interest other than as a shareholder  in the matters to be decided
the chief executive attends meetings of the committee by invitation but does not take part in the committee’s recommendations on his
own remuneration no director is involved in deciding his or her own remuneration whether determined by the committee or  in the case 
of the nonexecutives by the board
during the year  the remuneration committee received specialist remuneration advice from hewitt new bridge street who are independent
remuneration consultants and the hay group 
the committee meets as often as necessary to discharge its duties which during 200708 was six times the terms of reference of the
committee are available on the company’s website
executive directors
policy
the company’s executive director remuneration policy is to provide compensation packages at market rates which reward successful
performance and attract retain and motivate the directors reflecting their individual contribution and value to the company  the
remuneration packages offered by the company are comparable to other uk based companies of similar size and nature
the remuneration policy places a lot of emphasis on ensuring that the executive directors’ incentive arrangements have the potential to
provide a greater reward than base salary  combined with an approach that requires incentive arrangements to be linked directly to business
specific measures this ensures that rewards will be based on the continued creation of shareholder value and to ensure that the senior
management team remain incentivised to remain with the company and deliver outstanding returns to shareholders
in fixing remuneration packages the committee has regard to the compensation commitments that would result in the event of early
termination
the remuneration policy is expected to be applied in respect of the forthcoming and subsequent years
remuneration package
base salary
base salaries are reviewed annually and reflect the level of responsibility of the executive director  hisher market value and individual
performance the committee’s objective is to offer base salaries around the market median level above median levels of pay may be agreed
for outstanding performance or to attract executives of the right calibre in reviewing base salaries the committee has regard to comparable
jobs in manufacturing companies of a similar size and reach
the committee recently reviewed the base salaries of the executive directors the current salary levels effective from the date shown 
are set out below the figures in brackets reflect salary levels effective as at 25 june 2007
bob davies £285000 effective from 1 january 2008 £265000 in 200607
4

peter bream £180000 effective from 1 october 2007 £152252 in 200607
benefits in kind
benefits consist of a fully expensed company car or cash equivalent and private medical insurance in addition to life assurance the value 
of benefits is not pensionable 
pensions
the executive directors are not members of the company pension scheme and they have their own pension arrangements into which the
company made contributions of £40500 in 200708 £26400 in 200607 for bob davies and £24919 in 200708 £16300 in 200607 for
peter bream being 15 of base salary the company has no pension liability beyond making these annual contributions on death a lump
sum deathinservice benefit of four times base salary is payable
8536renold ar 2008 acctstplayout 1  25608  1705  page 21 22 directors’ remuneration report renold plc annual report and accounts 2008
annual bonus
the maximum annual bonus potential for peter bream for 200708 was 60 of base salary with the approval of the remuneration
committee for bob davies the maximum bonus opportunity for 200708 was 130 for 200708 a bonus was awarded to bob davies 
of approximately 715 and to peter bream of approximately 257 bonus payments are based on group financial targets and a personal
objective for each executive director  set by the chief executive or in the case of the chief executive the chairman maximum bonus
payments are made only upon the achievement of outstanding performance bonuses are not pensionable the bonus policy set in 
200708 will remain for 200809
longterm incentive arrangements
2004 option plans
in 2007  the committee carried out a review of the company’s senior executive remuneration policy  with a particular focus on the longterm
incentive provision afforded to the executive directors and other key personnel the main conclusion of that review was that the renold plc
2004 inland revenue approved company share option plan and the renold plc 2004 noninland revenue approved company share option
plan together the “2004 option plans” would be the sole longterm incentive arrangements for executive directors and senior management
in a general meeting of the company on 28 march 2008 shareholders approved various amendments to the 2004 option plans necessary to
give effect to the conclusions contained within the aforementioned review  the key features of the 2004 option plans are therefore as follows
• market value share options will become exercisable on the third anniversary of the grant date provided that a the participant is still
employed by the company and b the performance conditions see below have been satisfied over a fixed threeyear performance period
• the maximum annual option grant limit is 200 of base salary with no scope to exceed this limit and in line with market practice 
‘base salary’ is base salary during a financial year of the company
• commitments to issue new shares under all share plans operated by the company including executive share plans is 10 of the
company’s issued share capital in any 10 year period
t o ensure that the amended 2004 option plans had an immediate and motivational impact initial awards following the general meeting
were made to the chief executive the finance director and the executive team it is the committee’s intention that annual award levels will
normally be no higher than 100 of base salary  
the performance conditions attaching to options granted under the option plans are considerably more challenging than those used by
other comparable companies in 200809 there will be two performance conditions and both will operate independently of each other 
approximately twothirds of an option grant will be subject to an earnings per share eps performance condition based on annualised
compound growth in the company’s adjusted eps
5
in excess of inflation rpi over a fixed threeyear performance period the “performance
period” the number of shares under option that vest in respect of this portion are as follows
annualised compound growth in adjusted eps percentage of twothirds of the shares under option that vest
less than rpi  5 pa nil
rpi  5 pa 25
between rpi  5 pa and rpi  17 pa on a straight line basis between 25 and 100
rpi  17 pa or more 100
adjusted eps has been used because it is a key internal measure of longterm company performance
the remaining onethird will be subject to an absolute total shareholder return tsr performance condition measured over the performance
period no part of an option subject to the tsr performance condition will vest unless the committee is satisfied that over the performance
period the company’s underlying financial position has been satisfactory  
t o the extent that the performance conditions are not met in whole or in part at the end of the performance period the options lapse the
introduction of a tsr element to the company’s remuneration policy is a fundamental shift from the existing policy that was exclusively
based on earnings per share the number of shares under option that vest in respect of this portion is as follows
growth in the company’s tsr over the performance period percentage of onethird of the shares under option that vest
less than 80 nil
80 25
between 80 and 200 on a straight line basis between 25 and 100
200 or more 100
the committee will always review the performance conditions prior to options being granted to ensure that they remain appropriate given
the company’s expectations of future performance
5 being basic eps from continuing operations less exceptional items after tax
directors’ remuneration report
continued
8536renold ar 2008 acctstplayout 1  25608  1705  page 22 directors’ remuneration report 23 renold plc annual report and accounts 2008
other long term incentive plans
executive directors have historically been eligible to participate in the renold performance share plan the “psp” and the renold deferred
annual bonus scheme the “dabs” no awards have ever been granted under these incentive arrangements executive directors have also
historically been eligible to participate in the renold 1995 executive share option scheme the “1995 scheme” this was replaced by the 
2004 option plans described above and is now closed
in relation to the “dabs”  in the event that the executive directors decide to defer all or part of any annual bonus they might receive in the
acquisition of deferred shares the company may  at its discretion grant a conditional award of matching shares up to a maximum matching
ratio of 151 matching shares to deferred shares matching shares only vest if certain performance conditions are met the performance
conditions require growth in the company’s adjusted earnings per share “eps” over a fixed three year performance period from the
commencement of the financial year in which a matching award is made to exceed the percentage growth 
in the consumer price index “cpi” over the same period by a minimum of 3 per annum compounded which will trigger 40 of the
matching shares comprised in the award to vest and increasing to 100 vesting on a straight line basis if the percentage growth in the 
cpi is exceeded by 6 per annum compounded no matching awards have ever been made
in addition the company operates a savingsrelated share option scheme “sa ye scheme” in which the executive directors are eligible 
to participate on the same terms as all uk employees options granted under this scheme have been exercisable on completion of either 
a threeyear or fiveyear savings contract no options were granted during the year under the sa ye scheme
details of the market price at the end of the year  and the highest and lowest market price are set out in note 21 to the financial statements
directors’ service contracts
each of the executive directors in line with the committee’s policy  has a contract with a 12 month notice period as a matter of policy  in the
event of new external appointments the length of service contracts would be determined by the committee in light of the then prevailing
market practice details of the directors’ terms of appointment and notice periods are as follows
expiry date of current term
date of contract notice period
bob davies 2 march 2004 t erminable on 12 months notice
peter bream 29 june 2006 t erminable on 12 months notice
other than normal payments due during the notice period there are no express provisions for compensation payable upon early termination
of the executive directors’ contracts in the event of early termination the company’s policy is to act fairly in all circumstances and the duty 
to mitigate would be taken into account the remuneration committee has noted the abinapf joint statement on executive contracts and
severance neither of the contracts provides for compensation to be paid in the event of a change of control of the company  copies of the
two service contracts will be available for inspection by shareholders at the agm
the letters of appointment of the nonexecutive directors confirm that the appointment in each case is for a specified term and that
reappointment is not automatic
external nonexecutive directorships
the board encourages executive directors to broaden their experience outside the company by taking up nonexecutive appointments 
board permission is required before an executive director can accept any such appointment with permission only to be given in appropriate
circumstances with fees normally paid to the company unless otherwise approved by the committee during the year  no such appointments
were made
nonexecutive directors
policy
the company’s policy in respect of nonexecutive directors’ remuneration is managed by the board remuneration for nonexecutive
directors’ is confined to fees alone without a performance related element each of the nonexecutive directors is entitled to reimbursement
of reasonable expenses incurred in the course of their duties 
chairman’s and nonexecutive directors’ fees
the fee levels paid to the chairman and nonexecutive directors as at 25 june 2008 are set out below
matthew peacock £50000
barbara beckett £30000
rod powell £30000
david shearer £35000
8536renold ar 2008 acctstplayout 1  25608  1705  page 23 24 directors’ remuneration report renold plc annual report and accounts 2008
directors’ remuneration report
continued
appointment details
the dates of the chairman’s and current nonexecutive directors’ appointments are as follows
date of date of election
nonexecutive appointment last reelection
matthew peacock 21 september 2006 26 july 2007
john allkins 17 april 2008 t o be elected at the annual general meeting on 30 july 2008
barbara beckett 1 march 2005 21 july 2005
rod powell 21 september 2006 26 july 2007
david shearer 1 may 2007 26 july 2007
when making a decision on reappointment the board reviews the nonexecutive director’s attendance and performance at meetings and
the composition and skill of the board as a whole 
each nonexecutive director is appointed for a specified term subject to reelection their letter of appointment contains no provision for
payment or compensation on early termination copies of the individual contracts of appointment are available for inspection by
shareholders at the agm
individual director’s remuneration audited information
the remuneration for each of the directors for the year ended 31 march 2008 is as set out below
2008 2007
salaries annual benefits benefits
 fees bonus cash noncash t otal total
£000 £000 £000 £000 £000 £000
executive directors
bob davies 270 204 – 30 504 497
peter bream from 17 06 166 46 11 1 224 176
t ony brown retired 19906 ––––– 86
436 250 11 31 728 759
nonexecutive directors
matthew peacock
6
– chairman from 21906 25 – – – 25 –
barbara beckett 30 – – – 30 30
rod powell
7
from 21906 55 – – – 55 42
david shearer from 1507 32 – – – 32 –
roger leverton retired 21906 ––––– 43
mark smith retired 21906 ––––– 16
578 250 11 31 870 890
the company has provided pension contributions of £40500 in 200708 £26400 in 200607 for bob davies and £24919 in 200708 for
peter bream £16300 in 200607
directors’ beneficial interests in shares unaudited information
the beneficial interests of the directors who held office at 31 march 2008 in the ordinary shares of the company as appearing in the register
of directors’ interests maintained under the companies act 2006 were as follows
31 march 2008 31 march 2007
director shares shares
matthew peacock 12937500
8
11032500
bob davies 194000 145000
barbara beckett nil nil
peter bream 27500 20000
rod powell 62012 62012
david shearer 30000 nil
9 
6 matthew peacock waived his fees for a period of approximately one year 
7 rod powell was paid additional fees for the first year of his appointment as he committed additional time to the role
8 matthew peacock is indirectly interested in 12937 500 shares of which 3481729 through hanover i fund lp vidacos nominees and 9455771 through hanover i master 
fund lp vidacos nominees
9 as at date of appointment on 1 may 2007 
no directors held nonbeneficial interests in the ordinary shares of renold plc at the end of the year or at the date of this report as at 
31 march 2008 the only interest of the directors in the share capital of the company was in the ordinary shares as stated above
there have been no other changes in the interests of directors in the share capital of the company between the end of the financial year 
and the date of this report
8536renold ar 2008 acctstplayout 1  25608  1705  page 24 directors’ remuneration report 25 renold plc annual report and accounts 2008
directors’ share options as at 31 march 2008 audited information
bob davies
no of share options date
option price from which
scheme at 310307 granted lapsed at 310308 in pence exercisable expiry date
executive scheme 125000 – – 125000 7650 11 march 2007 10 march 2014
475000 – – 475000 8800 2 september 2007 1 september 2014
100000 – – 100000 6160 26 july 2009 25 july 2016
100000 – – 100000 11420 2 january 2010 1 january 2017
– 150000 – 150000 9255 27 november 2010 26 november 2017
– 568083 – 568083 7590 31 march 2011 30 march 2018
t otal 800000 718083 – 1518083
sa ye 10744 – – 10744 5430 1 march 2009 31 august 2009
t otal 10744 – – 10744
note bob davies was granted a further option of 180292 shares at 77 00 pence on 1 april 2008 normally exercisable from 1 april 2011 until 31 march 2018
directors’ share options as at 31 march 2008 audited information
peter bream
no of share options date
option price from which
scheme at 310307 granted lapsed at 310308 in pence exercisable expiry date
executive scheme 150000 – – 150000 6160 26 july 2009 25 july 2016
60000 – – 60000 11420 2 january 2010 1 january 2017
– 100000 – 100000 9255 27 november 2010 26 november 2017
– 237 154 – 237 154 7590 31 march 2011 30 march 2018
t otal 210000 337154 – 547154
sa ye – – – – – – –
total – – – –
performance graph
the graph below shows the company’s total shareholder return share price growth plus dividends reinvested where applicable for each of
the last five financial years of a holding of company shares against a hypothetical holding of shares in the ftse engineering and machinery
index this index was selected because it is a broad equity index of which the company is a constituent
rebased to 100 on 31 march 2003
approved by the board
lindsay beardsell
company secretary
24 june 2008
0
50
100
150
200
250
300
350
400
mar 03 mar 04 mar 05 mar 06 mar 07 mar 08
year
renold plc
ftse industrial engineering
8536renold ar 2008 acctstplayout 1  25608  1705  page 25 26 statement of directors’ responsibilities renold plc annual report and accounts 2008
statement of directors’ responsibilities
the following statement which should be read in conjunction with the report of the independent auditors shown on page 31 is made with 
a view to distinguishing for shareholders the respective responsibilities of the directors and of the auditors in relation to the financial
statements of both the group and the company 
the directors are responsible for preparing the annual report and the group financial statements in accordance with applicable uk law 
on those international financial reporting standards as adopted by the european union
the directors are required to prepare group and company financial statements for each financial year  the group financial statements are
required to be prepared in accordance with ifrss as adopted by the european union and also to present fairly the financial position and
performance of the group the directors have elected to prepare the company financial statements in accordance with uk accounting
standards and under the companies act 1985 these statements are required to give a true and fair view of the state of affairs of the company  
in preparing the group and company financial statements the directors are required to
1 select appropriate accounting policies and apply them consistently
2 make judgements and estimates that are reasonable and prudent
3 present information including accounting policies in a manner that provides relevant reliable comparable and understandable information
4 provide additional disclosures when compliance with the specific requirements in ifrs is insufficient to enable users to understand the
impact of particular transactions other events and conditions on the groups’ financial position and financial performance
5 for the group financial statements state whether they have been prepared in accordance with ifrss as adopted by the european union
subject to any material departures disclosed and explained in the financial statements and
6 for the company financial statements state whether applicable uk accounting standards have been followed subject to any material
departures disclosed and explained in the company financial statements
the directors confirm that they have complied with the above requirements in preparing the financial statements
the directors are responsible for ensuring that proper accounting records are maintained which disclose with reasonable accuracy at any
time the financial position of the company and of the group and to enable them to ensure that the financial statements comply with the
companies act 1985 and article 4 of the ias regulation they are also responsible for taking reasonable steps to safeguard the assets of the
company and the group and in that context to have proper regard to the establishment of the appropriate systems of internal control with 
a view to the prevention and detection of fraud and other irregularities
the directors are required to provide the auditors with every opportunity to take whatever steps and undertake whatever inspections the
auditors consider to be appropriate for the purpose of enabling them to give their audit report on the financial statements
the directors intend to publish the financial statements on the group’s website wwwrenoldcom the directors are responsible for the
maintenance and integrity of the website in accordance with uk legislation governing the preparation and dissemination of financial
statements access to the website is available from outside the uk where comparable legislation may be different
each of the directors confirms that to the best of his or her knowledge
• the financial statements prepared in accordance with the applicable set of accounting standards give a true and fair view of the assets
liabilities financial position and profit or loss of the group and the undertakings included in the consolidation taken as a whole and
• the directors’ report includes a fair review of the development and performance of the business and the position of the group and the
undertakings included in the consolidation taken as a whole together with a description of the principal risks and uncertainties that 
they face
by order of the board
bob davies peter bream
chief executive finance director
8536renold ar 2008 acctstplayout 1  25608  1705  page 26 corporate governance 27 renold plc annual report and accounts 2008
corporate governance
10 john allkins was appointed to the board on 17 april 2008
corporate governance statement
we are committed to high standards of corporate governance and our board acknowledges its contribution to achieving management
accountability  improving risk management and ultimately to creating shareholder value 
this statement describes how we have applied the principles of corporate governance contained in the combined code issued by the
financial reporting council in june 2006 the “combined code”
compliance with the combined code
our board considers that the company has complied with the provisions of section one of the combined code throughout the year ended 
31 march 2008 except where highlighted below
the board
composition
our board presently comprises a nonexecutive chairman four
10
nonexecutive directors one of whom will be retiring at the forthcoming
agm and will not be offering herself for reelection and two executive directors the roles of chairman and chief executive are separated
with a clear division of responsibilities agreed by the board the chairman’s primary role is to ensure the effectiveness of the board in setting
the direction of the company  the chief executive has the responsibility for managing the business and implementing the strategy agreed 
by the board biographical details of the directors appear on page 15
board operation
the board has approved a schedule of matters reserved for decision by the board to ensure that the board takes all major strategy  policy 
and investment decisions affecting the group in addition it is responsible for business planning and risk management policies and the
development of group policies for areas such as safety  health and environmental policies directors’ and senior managers’ remuneration 
and ethical issues the executive directors have authority to deal with all other matters affecting the group
new directors are provided with an appropriate induction programme this does not necessarily require the new director to meet the
company’s major shareholders 
board evaluation
our board is supportive of the principle of evaluation of the board as set out in the combined code a formal process for evaluating the
performance of the board and its members and its committees is conducted annually  this process gives our directors the opportunity to
identify areas for improvement both jointly and individually through the use of questionnaires andor open discussion an evaluation of the
chairman is also carried out annually  led by the senior independent director  both an evaluation of the board and an evaluation of the
chairman were carried out in 200708
board independence
for the year to 31 march 2008 matthew peacock acted as the interim chairman of the audit committee as a result the company was 
not compliant with paragraph c31 of the combined code which states that all members of the audit committee should be independent 
nonexecutive directors however  john allkins was appointed to the board and as chairman of the audit committee on 17 april 2008 and 
has chaired all audit committee meetings since that date
the chairman matthew peacock is a principal of a significant shareholder  hanover  which now holds 1847 of the ordinary share capital 
of the company  our board considers that whilst the company is not in compliance with paragraph a22 of the combined code which states
that the chairman should on appointment meet the independence criteria set out in paragraph a31 of the combined code nor with
paragraph c31 of the combined code as stated above matthew peacock acts with complete independence of character and judgement 
rod powell is associated with hanover  we consider that whilst rod powell does not meet the independence criteria set out in paragraph 
a31 of the combined code he also acts with complete independence of character and judgement
david shearer was appointed to the board on 1 may 2007  for the month of april 2007  the company was therefore not in compliance with
paragraph a32 of the combined code
our board considers that each of the other nonexecutive directors is independent and free from any business or other relationship which
could affect their judgement
board members are able to seek independent legal or other professional advice in respect of their duties as they may require at the
company’s expense and have access to the advice and services of the company secretary 
we initially appoint all new directors upon recommendation from the nomination committee all directors are subject to election by
shareholders at the first annual general meeting following their appointment and to reelection thereafter at intervals of no more than 
three years
8536renold ar 2008 acctstplayout 1  25608  1705  page 27 28 corporate governance renold plc annual report and accounts 2008
our board meets on a regular basis with an agenda and necessary papers for discussion distributed in advance of each meeting the
following table shows the number of meetings of the board and its committees during the year and individual attendance by board and
committee members at those meetings
number attended
board audit nomination remuneration risk
number held 83 – 6 2
matthew peacock 8 3 – 5 –
bob davies 8 – – – 2
barbara beckett 8 3 – 6 –
peter bream 8 – – – 2
rod powell 72 – 5 –
david shearer
11
73 – 6 –
board committees
our board has delegated authority to a number of committees to deal with specific aspects of the management and control of the group
the company secretary  lindsay beardsell acts as secretary to all these committees and the terms of reference for each of these committees
are available on the company’s website the terms of reference for the board and each of the committees are in the process of being reviewed
and updated as part of a wider corporate governance review revised versions of the terms of reference will be made available on the
company’s website when they have been approved by the board
composition of board committees
audit committee nomination committee remuneration committee
matthew peacock chairperson
12
matthew peacock chairperson barbara beckett chairperson
13 
david shearer david shearer matthew peacock
rod powell rod powell david shearer
barbara beckett barbara beckett rod powell
audit committee
the audit committee is a committee of the board which was until 17 april 2008 comprised of matthew peacock the chairman of the
committee together with the nonexecutive directors on 17 april 2008 matthew peacock stepped down as chairman of the audit
committee and was replaced by john allkins an independent nonexecutive director  bob davies and peter bream attend meetings from time
to time at the invitation of the committee
the committee normally meets three times a year  our board is satisfied that as well as the chairman of the committee at least one other
member of the audit committee has recent and relevant financial experience its terms of reference include the review of the group’ s financial
statements internal financial control systems the whistleblowing policy  internal audit reports and the conduct of the external audit 
the chairman chief executive finance director and other managers including the internal audit function attend meetings from time to
time at the invitation of the committee the external auditors who attend by invitation are invited by the committee to advise them of any
matters which they consider should be brought to the committee’s attention without the executive management present
a formal process for evaluating the independence of the external auditors and the performance of the committee and the internal audit
function is conducted annually  the board reviews the outcome additionally  to safeguard the independence and objectivity of the auditors
the committee has approved a policy on nonaudit services provided by the auditors in line with professional practice this is in compliance
with the auditing practices board apb’s ethical standards
the committee has met three times during the year  in the course of these meetings the committee considered matters which included 
the following
• internal controls reports from the internal audit function summarising work planned and undertaken recommending improvements
and describing actions taken by management the committee also sought the views of the external auditors in making its assessment 
of the internal control environment including all material controls including financial operational and compliance controls and risk
management systems
• internal audit function the committee evaluated the performance of the internal audit function and assessed the work planned and
undertaken through the completion of a questionnaire provided by ernst  y oung which was used to facilitate a discussion of the
performance 
• financial reporting the committee reviewed draft annual and interim reports before recommending their publication to the board the
committee discussed with the chief executive finance director and external auditors the significant accounting policies estimates and
judgements applied in preparing these reports
11 david shearer was appointed to the board on 1 may 2007 and attended all meetings from this date
12 matthew peacock has now been replaced as chairman of the audit committee by john allkins who was appointed to the board and as chairman of the 
audit committee on 17 april 2008
13 barbara beckett will be retiring with effect from the agm to be held on 30 july 2008 rod powell will replace barbara as chairperson of the remuneration committee
corporate governance
continued
8536renold ar 2008 acctstplayout 1  25608  1705  page 28 corporate governance 29 renold plc annual report and accounts 2008
nomination committee
the nomination committee is a committee of the board comprised of the chairman of the board matthew peacock who is chairman of the
committee and the nonexecutive directors the committee meets as required and its terms of reference are to select and recommend to the
board new appointments of executive and nonexecutive directors no new appointments were made to the board in the year other than
david shearer who was appointed on 1 may 2007 as detailed in the 2007 annual report and john allkins who was appointed to the board
on 17 april 2008 john allkins was appointed following an evaluation of a number of candidates put forward to the nomination committee
no open advertising was used for his appointment
remuneration committee
the remuneration committee is currently chaired by barbara beckett who following her resignation from the board at the agm will be
replaced by rod powell in addition to barbara beckett it comprises david shearer and rod powell both of whom are nonexecutive directors
and matthew peacock and john allkins with effect from 17 april 2008 bob davies and the group human resources director  maggie hurt
attend meetings from time to time at the invitation of the committee 
this committee determines the terms and conditions of employment including remuneration and benefits of the executive directors as well
as performance related bonus schemes and pension rights the main board determines the remuneration of the nonexecutive directors 
and individual nonexecutive directors are not present when their own remuneration is being discussed
although the company is not in compliance with paragraph b21 of the combined code which states that all members of the remuneration
committee should be independent the board considers that the presence of matthew peacock brings valuable and independent judgement
to all remuneration decisions
the directors’ remuneration report is set out on pages 21 to 25
risk monitoring committee
the risk monitoring committee is chaired by the chief executive and is comprised of the executive directors the company secretary the
group human resources director  and the supply chain and it director  its role is to oversee group risk management and to ensure that
appropriate internal controls are in place
internal controls
the directors have overall responsibility for the group’s system of internal control and for reviewing internal control effectiveness the
executive team is accountable to the directors for implementing board policies on risk and control and for monitoring and reporting to the
board that it has done so the ongoing process of review of the system of internal controls by the directors has been in place for the year
ended 31 march 2008 and up to the date of approval of the annual report and financial statements internal controls are reviewed on 
a regular basis by the risk monitoring committee
our internal controls are designed to mitigate rather than eliminate the risks identified and can provide only reasonable and not absolute
assurance against material misstatement or loss
the key features of our internal control system are
• a risk monitoring committee which ensures on behalf of the board that appropriate policies are implemented to identify and evaluate
risks and to design operate and monitor a suitable system of internal control
• an internal audit function which assists management and the audit committee in the fulfilment of the board’s responsibility of ensuring
that the group’s financial and accounting systems provide accurate and uptodate information about its current financial position
• risk assessments completed by senior management at each operating unit as part of a continuous process and reporting of these which 
is reviewed by the risk monitoring committee
• an organisation structure which supports clear lines of communication and tiered levels of authority
• a schedule of matters reserved for the board’s approval to ensure it maintains control over appropriate strategic financial organisational
and compliance issues
• the preparation of detailed annual financial plans covering profit and cash flow which are approved by the board the review of detailed
regular reports comparing actual performance with plans and of updated financial forecasts
• procedures for the appraisal approval and control of capital investment proposals including acquisitions and disposals
• monitoring procedures which include a system of key financial controls questionnaires supported by internal audit reviews the results 
of this work are reported to the audit committee
the company is in the process of undertaking a full review of its corporate governance policies as a result the board expects to approve 
a corporate compliance governance statement during the year  which contains revised terms of reference for the board and each of the
board committees in addition the company is in the process of documenting its policy in relation to internal controls with a view to
producing a renold internal control statement this will be completed during the coming year 
the risk monitoring committee reports to the board which is ultimately responsible for the group’s internal controls including financial
operational and compliance controls and risk management systems 
8536renold ar 2008 acctstplayout 1  25608  1705  page 29 30 corporate governance renold plc annual report and accounts 2008
corporate governance
continued
communications with shareholders
communications with our shareholders are given high priority  the board is accountable to our shareholders and as such it is important 
for the board to appreciate the requirements of shareholders and equally that shareholders understand how the actions of the board and
shortterm financial performance relate to the achievement of our longer term goals
our reporting calendar is driven by the publication of interim and final results each year  in which the board reports to shareholders on its
stewardship of the company  the chief executive’s review on pages 5 to 8 and the financial review on pages 11 to 14 comment on our financial
performance in the context of the business risks faced and objectives and plans for the future at other times during the year  we make
presentations to analysts and provide updates to the london stock exchange and shareholders via the company’s website in addition our
chairman chief executive and finance director meet with major shareholders to discuss governance and group strategy  our largest
shareholder has a representative on the board
the chairman ensures that the chief executive and finance director provide feedback to the board following presentations to investors and
meetings with shareholders in order to ensure that board members and in particular nonexecutive directors develop an understanding 
of the views of major shareholders about their company 
david shearer was appointed to the board on 1 may 2007  the company was not in compliance with paragraph a33 for the month of 
april 2007 
our annual general meeting provides an opportunity for communication with our private and institutional investors and we encourage
shareholders to attend and welcome their participation
at our annual general meeting the chairman of the board and the chairpersons of the audit remuneration nomination and risk
monitoring committees together with the executive directors will be available to answer questions notice of our annual general meeting 
is sent to shareholders at least 20 working days before the meeting details of the proxy votes lodged on each resolution are made available
to shareholders who are invited to talk informally to the directors after the formal proceedings
the company’s website at wwwrenoldcom presents additional information about us is regularly updated and includes the posting of the
interim and final preliminary results and interim management statements on the day they are announced
if you wish to advise a change of name address or dividend mandate please contact our registrar  capita registrars whose contact details
appear on page 77  alternatively  you can view up to date information and manage your shareholding through the registrar’s share portal
where you will be able to access and maintain your holding at your own convenience y ou will require your unique investor code which can 
be found on your share certificate or dividend tax voucher  the url for the portal is wwwcapitashareportalcom
8536renold ar 2008 acctstplayout 1  25608  1705  page 30 report of the independent auditors 31 renold plc annual report and accounts 2008
t o the members of renold plc
we have audited the consolidated financial statements of renold plc for the year ended 31 march 2008 which comprise the consolidated
income statement the consolidated balance sheet the consolidated cash flow statement the consolidated statement of recognised
income and expense and the related notes 1 to 28 these group financial statements have been prepared under the accounting policies 
set out therein 
we have reported separately on the company financial statements of renold plc for the year ended 31 march 2008 and on the information 
in the directors’ remuneration report that is described as having been audited
this report is made solely to the company’s members as a body  in accordance with section 235 of the companies act 1985 our audit work
has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditors’
report and for no other purpose t o the fullest extent permitted by law we do not accept or assume responsibility to anyone other than the
company and the company’s members as a body  for our audit work for this report or for the opinions we have formed
respective responsibilities of directors and auditors
the directors’ responsibilities for preparing the annual report and the group financial statements in accordance with applicable law 
and international financial reporting standards ifrss as adopted by the european union are set out in the statement of directors’
responsibilities
our responsibility is to audit the group financial statements in accordance with relevant legal and regulatory requirements and international
standards on auditing uk and ireland
we report to you our opinion as to whether the group financial statements give a true and fair view and whether the group financial
statements have been properly prepared in accordance with the companies act 1985 and article 4 of the ias regulation we also report to 
you whether in our opinion the information given in the directors’ report is consistent with the financial statements the information given
in the directors’ report includes that specific information presented in the chairman’s statement the chief executive’s review and the
financial review that is cross referred from the group results section of the directors’ report
in addition we report to you if in our opinion we have not received all the information and explanations we require for our audit or if
information specified by law regarding directors’ remuneration and other transactions is not disclosed
we review whether the corporate governance statement reflects the company’s compliance with the nine provisions of the 2006 combined
code specified for our review by the listing rules of the financial services authority  and we report if it does not we are not required to
consider whether the board’s statements on internal control cover all risks and controls or form an opinion on the effectiveness of the group’s
corporate governance procedures or its risk and control procedures
we read other information contained in the annual report and consider whether it is consistent with the audited group financial
statements the other information comprises only the performance summary  chairman’s statement chief executive’s review the financial
review the directors’ report the directors’ remuneration report the corporate governance section the group five y ear financial review 
and notice of the annual general meeting we consider the implications for our report if we become aware of any apparent misstatements
or material inconsistencies with the group financial statements our responsibilities do not extend to any other information
basis of audit opinion
we conducted our audit in accordance with international standards on auditing uk and ireland issued by the auditing practices board 
an audit includes examination on a test basis of evidence relevant to the amounts and disclosures in the group financial statements 
it also includes an assessment of the significant estimates and judgments made by the directors in the preparation of the group financial
statements and of whether the accounting policies are appropriate to the group’s circumstances consistently applied and adequately
disclosed
we planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide
us with sufficient evidence to give reasonable assurance that the group financial statements are free from material misstatement whether
caused by fraud or other irregularity or error  in forming our opinion we also evaluated the overall adequacy of the presentation of
information in the group financial statements
opinion
in our opinion
• the group financial statements give a true and fair view in accordance with ifrss as adopted by the european union of the state 
of the group’s affairs as at 31 march 2008 and of its profit for the year then ended
• the group financial statements have been properly prepared in accordance with the companies act 1985 and article 4 of the ias
regulation and
• the information given in the directors’ report is consistent with the group financial statements
ernst  y oung llp
registered auditor
manchester
24 june 2008
report of the independent auditors
8536renold ar 2008 acctstplayout 1  25608  1705  page 31 32 accounting policies renold plc annual report and accounts 2008
accounting policies
basis of preparation – the consolidated financial statements for the year ended 31 march 2008 have been prepared in accordance with
international financial reporting standards ifrs and international financial reporting interpretations committee ifric interpretations
these include standards and interpretations endorsed by the european union eu in addition the financial statements have been prepared
in accordance with those parts of the companies act 1985 applicable to groups reporting under ifrs 
basis of consolidation – the consolidated financial statements incorporate the financial statements of renold plc the “company” and
enterprises controlled by the company its subsidiaries its subsidiaries which are those entities in which the group has an interest of more
than one half of the voting rights or otherwise has power to govern the financial and operating policies are consolidated under the
transitional options of ifrs 1 business combinations that occurred prior to the transition date have not been restated
subsidiaries are consolidated from the date on which control is transferred to the group and are no longer consolidated from the date that
control ceases the purchase method of accounting is used to account for the acquisition of subsidiaries by the group the cost of an
acquisition is measured as the fair value of the assets given up shares issued or liabilities undertaken at the date of acquisition plus costs
directly attributable to the acquisition the excess of the cost of acquisition over the fair value of the net assets of the subsidiary acquired is
recorded as goodwill intercompany transactions balances and unrealised gains on transactions between group companies are eliminated
unrealised losses are also eliminated unless the cost cannot be recovered 
foreign currency translation – items included in the financial statements of each entity in the group are measured using the currency that
best reflects the economic substance of the underlying events and circumstances relevant to that entity the “functional currency” the
consolidated financial statements are presented in sterling which is the functional and presentation currency of the parent
foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the date of the transaction 
or average rates where applicable foreign exchange gains and losses resulting from the settlement of such transactions and from the
translation at yearend exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income
statement except for monetary items that form part of the net investment in foreign operations which are taken to equity 
assets and liabilities of overseas subsidiaries are translated into sterling at the exchange rates ruling at the end of the financial year  income
statements and cash flows are translated at the appropriate average rates of exchange for the year  differences on exchange arising on the
retranslation of net assets in overseas subsidiaries at the beginning of the year  borrowings used to finance or provide a hedge against those
investments and from the translation of the results at average rates are taken directly to reserves when a foreign entity is sold related
exchange differences previously taken to reserves are recognised in the income statement as part of the gain or loss on sale
changes in accounting policy and disclosures
the accounting policies adopted are consistent with those of the previous year except as follows
the group has adopted the following new and amended ifrs and ifric interpretations during the year  adoption of these revised 
standards and interpretations did not have any effect on the financial performance or position of the group they did however give rise 
to additional disclosures
ias 1 – amendment – presentation of financial statements capital disclosures
ifrs 7 – financial instruments disclosures
ifric 8 – scope of ifrs 2
ifric 9 – reassessment of embedded derivatives
ifric 10 – interim financial reporting and impairment
ifric 11 – ifrs 2 “group and t reasury share t ransactions”
the group has not adopted the following pronouncements which have been issued by the iasb but have not yet been endorsed for use 
in the eu
ias 1 – revised presentation of financial statements
ias 23 – borrowing costs
ias 27 – revised consolidated and separate financial statements
ifrs 2 – amendment – vesting conditions and cancellations
ifrs 3 – revised business combinations
ifrs 8 – operating segments
ifric 12 – service concession arrangements
ifric 13 – customer loyalty programmes
ifric 14 – ias19 – the limit on a defined benefit asset minimum funding requirements and their interaction
ias 32  ias 1 – amendments on puttable instruments
management does not expect that these standards and interpretations will have a material impact on the group’s results or financial
position but ias1 ias 23 and ifrs 8 may give rise to additional or changes to disclosures in the group’s financial statements management 
is still assessing the impact of ifric 14
8536renold ar 2008 acctstplayout 1  25608  1705  page 32 accounting policies 33 renold plc annual report and accounts 2008
intangible assets
a goodwill
goodwill represents the excess of the cost of an acquired entity over the fair value of the group’s share of the net identifiable assets liabilities
and contingent liabilities of the acquired entity at the date of acquisition goodwill arising on the acquisition of an entity is included as an
intangible asset goodwill is not amortised but is tested at least annually for impairment and carried at cost less accumulated impairment
losses any impairment charge is recognised immediately in the income statement
in circumstances where the fair value of the interest acquired in an entity’s assets liabilities and contingent liabilities exceeds the
consideration paid “negative goodwill” the excess is recognised immediately as a gain in the income statement
as permitted by ifrs 1 the group elected not to apply ifrs 3 “business combinations” to business acquisitions that occurred before 
4 april 2004 therefore the carrying amount of goodwill being cost less accumulated amortisation included under uk gaap forms the
“cost” of goodwill recognised under ifrs at the date of transition goodwill that was writtenoff directly to reserves under former uk gaap
will not be taken into account when determining the gain or loss on disposal of previously acquired businesses after 4 april 2004
b computer software
computer software that is not integral to an item of plant and equipment is recognised separately as an intangible asset amortisation is
charged on a straight line basis so as to charge the cost of software to the income statement over its expected useful life which is between
three and five years costs associated with developing or maintaining computer software programmes are recognised as an expense as
incurred
c research and development 
research expenditure is recognised as an expense as incurred costs incurred on development projects relating to the design and testing of
new or improved products are only recognised as intangible assets in circumstances where certain strict criteria are satisfied these include
the expectation that it is probable that the project will be a success considering its commercial and technological feasibility  and that all
associated costs can be measured reliably  otherwise development expenditure is recognised as an expense as incurred development costs
previously recognised as an expense are not recognised as an asset in a subsequent period development costs that have been capitalised are
amortised from the commencement of the commercial production of the product on a straightline basis over the period of its expected
benefit not exceeding five years
property  plant and equipment – property  plant and equipment are stated at cost being purchase cost plus any incidental costs of
acquisition less accumulated depreciation
depreciation is calculated on a straightline basis so as to charge the depreciable amount of the respective asset to the income statement
over its expected useful life the useful lives of assets are as follows
freehold buildings – 50 years
leasehold properties – 50 years or the period of the lease if less
plant and equipment – various according to type of asset the principal categories being
y ears
general plant and equipment                                     10
fixtures                                                                                    10
precision cutting and grinding machines             7
motor vehicles                                                                      3
where the carrying amount of an asset is greater than its estimated recoverable amount it is written down immediately to its recoverable
amount
gains and losses on disposals are determined by comparing proceeds with carrying amount and are included in operating profit
as permitted by ifrs 1 at 4 april 2004 the group has measured its freehold properties on a fair value basis and used that value as deemed
cost at the transition date
asset impairment – intangible assets and property  plant and equipment are reviewed at least annually  to ensure that assets are not carried
above their recoverable amounts where some indication of impairment exists calculations are made of the discounted cash flows resulting
from continued use of the assets value in use or from their disposal fair value less costs to sell where these values are less than the
carrying amount of the assets an impairment loss is charged to the income statement
leases – t angible assets held under finance leases which are those where substantially all the risks and rewards of ownership of the asset
have passed to the group are capitalised in the balance sheet at the lower of the fair value of the leased asset or the present value of the
minimum lease payments assets acquired under finance leases are depreciated over the shorter of the useful life of the asset or the lease
term the corresponding liability to the leasing company  net of finance charges is included as an obligation under finance leases in creditors
the interest element of the lease payment is charged to the income statement on a basis which produces a constant rate of charge over the
period of the liability  
8536renold ar 2008 acctstplayout 1  25608  1705  page 33 34 accounting policies renold plc annual report and accounts 2008
accounting policies
continued
leases continued
leases where a significant portion of the risk and reward of ownership is retained by the lessor are classified as operating leases payments
made under operating leases net of any incentives received from the lessor are charged to the income statement on a straightline basis
over the period of the lease
investment property – one of the group’s properties is classified as an investment property on the basis that it will be held for the longterm
earning a rental income this is a contractual arrangement arising from the disposal of a former business segment
the investment property was previously a manufacturing facility of the group but owneroccupation ceased upon disposal of the
automotive business on the date of disposal a transfer was made from property to investment property  the cost model has been applied
since that date and depreciation charged at 2 straight line
inventories – inventories are stated at the lower of cost and estimated net realisable value after due allowance for obsolete or slow moving
items cost includes all direct expenditure and attributable overhead expenditure incurred in bringing goods to their current state under
normal operating conditions the first in first out or an average method of valuation is used net realisable value is the estimated selling price
in the ordinary course of business less the costs of completion and selling expenses in the group accounts unrealised profit on sales within
the group is deducted from inventories
t axation – the tax charge comprises current tax payable and deferred tax
the group is subject to taxes in numerous jurisdictions the current tax charge represents an estimate of the amounts payable to tax
authorities in respect of taxable profits it is based on tax rates and laws that have been enacted or substantively enacted by the balance
sheet date
deferred income tax is provided in full using the liability method on temporary differences arising between the tax bases of assets and
liabilities and their carrying amounts in the consolidated financial statements currently enacted or substantively enacted tax rates as 
at the balance sheet date are used in the determination of deferred income tax
deferred income tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the
temporary differences can be utilised or taxable profit will be available against which unused tax losses can be utilised before they expire
deferred income tax is provided on temporary differences arising on investments in subsidiaries except where the timing of the reversal of
the temporary difference can be controlled by the group and it is probable that the temporary difference will not reverse in the foreseeable
future
the carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer
probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised unrecognised
deferred income tax assets are reassessed at each balance sheet date and are recognised to the extent that it has become probable that
future taxable profit will allow the deferred tax asset to be recovered
deferred income tax relating to items recognised directly in equity is recognised in equity and not the income statement
deferred income tax assets and deferred income tax liabilities are offset if a legally enforceable right exists to set off current income tax
assets against current income tax liabilities and the deferred income taxes relate to the same taxable authority and taxable entity  or where
deferred tax relates to different taxable entities the tax authority permits the group to make a single net payment
revenue – revenue comprises the fair value of goods provided to external customers after deducting value added tax or other sales related
taxes and trade discounts revenue from the sale of goods is recognised when significant risks and rewards of ownership of goods are
transferred to the buyer which is normally the point of despatch 
trade receivables – t rade receivables are recognised and carried at the original invoice amount less an allowance for any identified
impairment the impairment allowance is established when there is objective evidence that the group will not collect all amounts due 
under the original terms of the transaction the impairment is charged to the income statement and represents the difference between the
carrying amount and the recoverable amount balances are written off when the probability of recovery is assessed as remote
financial assets and liabilities
a financial assets 
financial assets are recognised when the group becomes party to the contracts that give rise to them and are classified as financial assets at
fair value through the income statement loans and receivables as appropriate the group determines the classification of its financial assets
at initial recognition and where allowed and appropriate revaluates this designation at each financial yearend when financial assets are
recognised initially  they are measured at fair value being the transaction price plus in the case of financial assets not at fair value through
the income statement directly attributable transaction costs the group considers whether a contract contains an embedded derivative when
the entity first becomes a party to it the embedded derivatives are separated from the host contract if it is not measured at fair value through
the income statement and when the economic characteristics and risks are not closely related to those of the host contract reassessment
only occurs if there is a change in the terms of the contract that significantly modifies the cash flows that would otherwise be required
all standard purchases and sales of financial assets are recognised on the trade date being the date that the group commits to purchase or
sell the asset standard transactions require delivery of assets within the timeframe generally established by regulation or convention in the
market place the subsequent measurement of financial assets depends on their classification as follows
i financial assets at fair value through the income statement – financial assets classified as held for trading and other assets designated as 
such on inception are included in this category  financial assets are classified as held for trading if they are acquired for sale in the short term
derivatives including separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging
instruments or as financial guarantee contracts assets are carried in the balance sheet at fair value with gains or losses recognised in the
income statement 
8536renold ar 2008 acctstplayout 1  25608  1705  page 34 accounting policies 35 renold plc annual report and accounts 2008
financial assets and liabilities continued
a financial assets continued
financial assets may be designated at initial recognition as at fair value through the income statement if the following criteria are met 
i the designation eliminates or significantly reduces the inconsistent treatment that would otherwise arise from measuring the assets or
recognising gains or losses on them on a different basis or ii the assets are part of a group of financial assets which are managed and their
performance evaluated on a fair value basis in accordance with a documented risk management strategy or iii the financial asset contains
an embedded derivative that would need to be separately recorded 
ii loans and receivables – loans and receivables are nonderivative financial assets with fixed or determinable payments that are not quoted 
in an active market do not qualify as trading assets and have not been designated as either fair value through the income statement or
availableforsale such assets are carried at amortised cost using the effective interest method if the time value of money is significant 
gains and losses are recognised in the income statement when the loans and receivables are derecognised or impaired as well as through
the amortisation process
b impairment of financial assets
the group assesses at each balance sheet date whether a financial asset or group of financial assets is impaired
i assets carried at amortised cost – if there is objective evidence that an impairment loss on assets carried at amortised cost has been
incurred the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated
future cash flows excluding future credit losses that have not been incurred discounted at the financial asset’s original effective interest rate
ie the effective interest rate computed at initial recognition the carrying amount of the asset is reduced through the use of an allowance
account the amount of the loss shall be recognised in administration costs
if in a subsequent period the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring
after the impairment was recognised the previously recognised impairment loss is reversed any subsequent reversal of an impairment loss 
is recognised in the income statement to the extent that the carrying value of the asset does not exceed its amortised cost at the reversal date
in relation to trade receivables a provision for impairment is made when there is objective evidence such as the probability of insolvency or
significant financial difficulties of the debtor that the group will not be able to collect all of the amounts due under the original terms of the
invoice the carrying amount of the receivable is reduced through use of an allowance account impaired debts are derecognised when they
are assessed as irrecoverable
ii assets carried at cost – if there is objective evidence that an impairment loss on an unquoted equity instrument that is not carried at fair
value because its fair value cannot be reliably measured or on a derivative asset that is linked to and must be settled by delivery of such an
unquoted equity instrument has been incurred the amount of the loss is measured as the difference between the asset’s carrying amount
and the present value of estimated future cash flows discounted at the current market rate of return for a similar financial asset
c interest bearing loans and borrowings 
obligations for loans and borrowings are recognised when the group becomes party to the related contracts and are measured initially at the
fair value of consideration received less directly attributable transaction costs after initial recognition interestbearing loans and borrowings
are subsequently measured at amortised cost using the effective interest method gains and losses arising on the repurchase settlement or
otherwise cancellation of liabilities are recognised respectively in finance revenue and finance cost
d financial liabilities at fair value through the income statement
financial liabilities at fair value through the income statement includes financial liabilities held for trading and financial liabilities designated
upon initial recognition as at fair value through profit and loss
financial liabilities are classified as held for trading if they are acquired for the purpose of selling in the near term derivatives including
separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments gains 
or losses on liabilities held for trading are recognised in the income statement
exceptional items – exceptional items are items in the profit from operations which individually or  if of a similar type in aggregate are
relevant to an understanding of the group’s financial performance these items are separately disclosed as memorandum information 
on the face of the income statement with additional information provided in the notes to the financial statements
employee benefits
a pension obligations 
group companies have various pensions plan arrangements matching the local conditions and practices in the countries in which 
they operate 
the group operates a number of defined benefit plans around the world the cost is calculated by independent actuaries using the projected
unit credit method any past service costs resulting from enhanced benefits are recognised immediately in income unless the changes are
conditional on the employees remaining in service for a specified period of time the “vesting period” in this case the past service costs are
amortised on a straightline basis over the vesting period
actuarial gains and losses which represent differences between the expected and actual returns on plan assets and the effect of changes in
actuarial assumptions are recognised in the statement of recognised income and expense in the period in which they occur 
8536renold ar 2008 acctstplayout 1  25608  1705  page 35 36 accounting policies renold plc annual report and accounts 2008
accounting policies
continued
employee benefits continued
a pension obligations continued
the defined benefit liability or asset recognised in the balance sheet represents the net total for each plan of the present value of the benefit
obligation at the balance sheet date less any past service costs not yet recognised less the fair value of plan assets for funded schemes 
at the balance sheet date if a plan records a surplus the asset recognised is limited to the amount of any unrecognised past service cost and
the present value of any amount expected to be recoverable by the group by way of refunds or reduction in future contributions
for defined contribution plans the group’s contributions are charged to the income statement in the period in which they fall due 
once the contributions have been paid the group has no further payment obligation
b sharebased compensation
the group operates equitysettled sharebased compensation plans the fair value of the employee services received in exchange for the
grant of the options is recognised as an expense in the income statement with the corresponding amount being recognised in equity  
the total amount to be expensed over the vesting period is determined by reference to the fair value of the options granted excluding the
impact of any nonmarket vesting conditions using a black scholes pricing model nonmarket vesting conditions are included in assumptions
about the number of options that are expected to become exercisable at each balance sheet date the group revises its estimates of the
number of options that are expected to become exercisable it recognises the impact of the revision of original estimates if any  in the income
statement and a corresponding adjustment to equity over the remaining vesting period the model is adjusted as necessary for market
based vesting conditions
as permitted by ifrs 1 the group has applied ifrs 2 “sharebased payment” only to equitysettled awards granted after 7 november 2002 
and which vested on or after 1 january 2005
financial instruments 
the group uses derivative financial instruments such as forward currency contracts and interest rate swaps to hedge its risks associated 
with foreign currency and interest rate fluctuations since 1 april 2005 such derivative financial instruments have been initially recognised at
fair value on the date on which a derivative contract is entered into and are subsequently remeasured at fair value derivatives are carried 
as assets when the fair value is positive and as liabilities when the fair value is negative
the fair value of forward currency contracts is calculated by reference to current forward exchange rates for contracts with similar maturity
profiles the fair value of interest rate swap contracts is determined by reference to market values for similar instruments
for those derivatives designated as hedges and for which hedge accounting is desired the hedging relationship is formally designated and
documented at its inception this documentation identifies the risk management objective and strategy for undertaking the hedge the
hedging instrument the hedged item or transaction the nature of the risk being hedged and how effectiveness will be measured throughout
its duration such hedges are expected at inception to be highly effective in offsetting changes in fair value or cash flows and are assessed on
an ongoing basis to determine that they actually have been highly effective throughout the reporting period for which they were designated
for the purpose of hedge accounting hedges are classified as
• fair value hedges when hedging the exposure to changes in the fair value of a recognised asset or liability or an unrecognised firm
commitment or
• cash flow hedges when hedging exposure to variability in cash flows that is either attributable to a particular risk associated with 
a recognised asset or liability or a highly probable forecast transaction or
• hedges of a net investment in a foreign operation
any gains or losses arising from changes in the fair value of derivatives that do not qualify for hedge accounting are taken to the income
statement the treatment of gains and losses arising from revaluing derivatives designated as hedging instruments depends on the nature 
of the hedging relationship as follows
a fair value hedges
for fair value hedges the carrying amount of the hedged item is adjusted for gains and losses attributable to the risk being hedged the
derivative is remeasured at fair value and gains and losses from both are taken to the income statement for hedged items carried at
amortised cost the adjustment is amortised through the income statement such that it is fully amortised by maturity  when an
unrecognised firm commitment is designated as a hedged item this gives rise to an asset or liability in the balance sheet representing the
cumulative change in the fair value of the firm commitment attributable to the hedged risk
the group discontinues fair value hedge accounting if the hedging instrument expires or is sold terminated or exercised the hedge no longer
meets the criteria for hedge accounting or the group revokes the designation
b cash flow hedges
for cash flow hedges the effective portion of the gain or loss on the hedging instrument is recognised directly in equity  while the ineffective
portion is recognised in the income statement amounts taken to equity are transferred to the income statement when the hedged
transaction affects the income statement such as when a forecast sale or purchase occurs 
if a forecast transaction is no longer expected to occur  amounts previously recognised in equity are transferred to the income statement if
the hedging instrument expires or is sold terminated or exercised without replacement or rollover  or if its designation as a hedge is revoked
amounts previously recognised in equity remain in equity until the forecast transaction occurs and are transferred to the income statement
or to the initial carrying amount of a nonfinancial asset or liability as above if the related transaction is not expected to occur  the amount 
is taken to the income statement
8536renold ar 2008 acctstplayout 1  25608  1705  page 36 accounting policies 37 renold plc annual report and accounts 2008
financial instruments continued
c hedges of a net investment
hedges of a net investment in a foreign operation including a hedge of a monetary item that is accounted for as part of the net investment
are accounted for in a way similar to cash flow hedges gains or losses relating to the effective portion are recognised directly in equity while
any gains or losses relating to the ineffective portion are recognised in the income statement on disposal of the foreign operation the
cumulative value of any such gains or losses recognised directly in equity is transferred to the income statement
derivatives embedded in other financial instruments or other host contracts are treated as separate derivatives when their risks and
characteristics are not closely related to those of the host contract and the host contract is not stated at its fair value with changes in its fair
value recognised in the income statement
from 1 april 2005 the group’s preference shares have been classified as liabilities dividends payable on the preference shares are included
within net finance costs 
cash and cash equivalents – cash and cash equivalents are carried in the balance sheet at cost for the purposes of the cash flow statement
cash and cash equivalents comprise cash on hand deposits held at call with banks other shortterm highly liquid investments with original
maturities of three months or less and bank overdrafts bank overdrafts are included within borrowings in current liabilities on the balance
sheet to the extent that there is no right of offset nor intention to settle net with cash balances
borrowing costs – borrowing costs are recognised in the income statement in the period in which they are incurred 
provisions – provisions are recognised when the group has a present legal or constructive obligation as a result of past events it is more likely
than not that an outflow of resources will be required to settle the obligation and a reliable estimate of the amount can be made where the
group expects a provision to be reimbursed for example under an insurance contract the reimbursement is recognised as a separate asset
but only when the reimbursement is virtually certain
costs related to ongoing activities of the group are not provided in advance
assets held for sale and discontinued operations – in accordance with ifrs 5 assets are classified as held for sale if their carrying amount will
be recovered by sale rather than by continuing use in the business and where the sale is highly probable for this to be the case the asset
must be available for immediate sale in its present condition management must be committed to and have initiated a plan to sell the asset
which when initiated was expected to result in a completed sale within a year  assets that are classified as held for sale are measured at the
lower of their carrying amount or fair value less costs to sell
a discontinued operation is a component of the business that has either been disposed of or satisfies the criteria to be classified as held for
sale and represents a separate major line of business or geographical area of operations “disposal group” or is part of a single coordinated
plan to achieve such a disposal the posttax profit or loss on a discontinued operation is shown as a single amount on the face of the group
income statement separate from the continuing results of the group prior year amounts are restated on a comparable basis in the balance
sheet the assets relevant to the “disposal group” are reported as a separate line item after current assets liabilities associated with the
disposal group are similarly disclosed as a line item below current liabilities comparative balance sheet amounts are not restated
dividend distribution to the company’s shareholders is recognised as a liability in the group’s financial statements in the period in which the
dividends are paid or approved by the company’s shareholders
significant accounting judgements estimates and assumptions
the preparation of financial statements in conformity with generally accepted accounting principles requires the use of estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during the reporting period although these estimates are based
on management’s best knowledge of current events and actions actual results ultimately may differ from those estimates
however  uncertainty about these assumptions and estimates could result in outcomes that could require a material adjustment to the
carrying value of the group’s assets or liabilities in the future
the key sources of estimation uncertainty that have a potential risk of causing material adjustment to the carrying amounts of assets and
liabilities within the next financial year are as follows
a impairment of nonfinancial assets
the group assesses whether there are any indicators of impairment for all nonfinancial assets at each reporting date goodwill is tested 
for impairment annually and at other times when such indicators exist
when value in use calculations are undertaken management must estimate the expected future cash flows from the asset or cash
generating unit and choose a suitable discount rate in order to calculate the net present value of those cash flows further details are
included in note 8
b deferred tax assets
deferred tax assets are recognised for all unused tax losses to the extent that it is probable that taxable profit will be available against which
the losses can be utilised significant management adjustment judgement is required to determine the amount of deferred tax assets that
can be recognised based upon the likely timing and level of future taxable profits together with the future tax planning strategies further
details are contained in note 18
c retirement benefit obligations
the cost of the group’s defined benefit plans are determined by using actuarial valuations the actuarial valuation involves making
assumptions about discount rates expected rates of return on assets future salary increases mortality rates and future pension increases
due to the longterm nature of these plans such estimates are subject to significant uncertainty  further details are given in note 19 
8536renold ar 2008 acctstplayout 1  25608  1705  page 37 38 consolidated income statement renold plc annual report and accounts 2008
2008 2007
note £m £m
continuing operations
revenue 1 1726 1593
operating costs 2 1604 1554
operating profit 122 39
operating profit before exceptional items 120 98
exceptional items 2 02 59
operating profit 122 39
financial costs 147 139
financial revenue 118 114
net financing costs 3 29 25
profit before tax 93 14
t axation 4 31 06
profit for the financial year from continuing operations 62 08
discontinued operations
profitloss for the financial year from discontinued operations 5 15 135
profitloss for the financial year 77 127
earnings per share 6
basic earningsloss per share 110p 183p
diluted earningsloss per share 108p 181p
basic earnings per share from continuing operations 89p 12p
diluted earnings per share from continuing operations 87p 12p
adjusted earnings per share from continuing operations 85p 84p
diluted adjusted earnings per share from continuing operations 83p 83p
 adjusted for the after tax effects of exceptional items
consolidated income statement
for the year ended 31 march 2008
8536renold ar 2008 acctstplayout 1  25608  1705  page 38 consolidated balance sheet 39 renold plc annual report and accounts 2008
2008 2007
note £m £m
assets
noncurrent assets
goodwill 8 163 152
other intangible assets 8 12 06
property  plant and equipment 9 395 340
investment property 10 19 16
other noncurrent assets 12 03 04
deferred tax assets 18 99 17 4
691 692
current assets
inventories 11 410 331
t rade and other receivables 12 352 301
derivative financial instruments 26 01 –
current tax asset 01 –
cash and cash equivalents 13 155 203
919 835
asset held for sale 14 – 34
919 869
tot al assets 1610 1561
liabilities
current liabilities
borrowings 15 83 7 8
t rade and other payables 16 418 361
derivative financial instruments 26 09 01
provisions 17 39 52
current tax liabilities – 06
549 498
net current assets 370 37 1
noncurrent liabilities
borrowings 15 306 314
provisions 17 05 –
preference shares 15 05 05
t rade and other payables 16 07 12
deferred tax liabilities 18 16 13
retirement benefit obligations 19 312 480
651 824
tot al liabilities 1200 1322
net assets 410 239
equity
issued share capital 20 175 17 4
share premium account 22 63 61
currency translation reserve 22 13 –
other reserves 22 06 –
retained earnings 22 191 16
tot al equity 410 239
approved by the board on 24 june 2008 and signed on its behalf by
matthew peacock bob davies
chairman director
consolidated balance sheet 
as at 31 march 2008
8536renold ar 2008 acctstplayout 1  25608  1705  page 39 40 consolidated cash flow statement renold plc annual report and accounts 2008
2008 2007
£m £m
cash flows from operating activities note 25
cash generated from operations – continuing 45 103
cash generatedabsorbed by operations – discontinued – 47
45 56
income taxes paid 23 14
net cash from operating activities 22 42
cash flows from investing activities
acquisition of subsidiary undertaking note 27 24 –
proceeds from disposal of businesses net of cash transferred 02 54
purchase of property  plant and equipment 75 60
purchase of intangible assets 07 06
proceeds on disposal of property  plant and equipment 11 02
proceeds on disposal of assets held for sale 60 –
interest received 01 02
net cash from investing activities 32 08
cash flows from financing activities
financing costs paid 28 30
proceeds from borrowings 71 350
repayment of borrowings 58 289
issue of ordinary shares 03 01
payment of finance lease liabilities 01 04
net cash from financing activities 13 28
net decreaseincrease in cash and cash equivalents 23 62
net cash and cash equivalents at beginning of year 154 96
effects of exchange rate changes 11 04
net cash and cash equivalents at end of year note 13 142 154
consolidated cash flow statement
for the year ended 31 march 2008
8536renold ar 2008 acctstplayout 1  25608  1705  page 40 consolidated statement of recognised income and expense 41 renold plc annual report and accounts 2008
2008 2007
£m £m
profitloss for the year 77 127
net incomeexpense recognised directly in equity
recycling of losses on cash flow hedges to the income statement 02 –
net losses on cash flow hedges taken to equity 08 –
foreign exchange translation differences 07 48
gains on fair value of hedging net investments in foreign operations 06 09
actuarial gains on retirement benefit obligations 160 09
t ax on items taken directly to equity 63 12
t otal incomeexpense recognised directly in equity 90 42
t otal recognised income and expense for the year 167 169
attributable to
equity shareholders of the company 167 169
consolidated statement of recognised income and expense
for the year ended 31 march 2008
8536renold ar 2008 acctstplayout 1  25608  1705  page 41 42 notes to the consolidated financial statements renold plc annual report and accounts 2008
1 segmental information
primary reporting format – business segment
the group’s continuing activities are in one class of business industrial power t ransmission the consolidated income statement for
continuing operations therefore relates wholly to the industrial power t ransmission business
segment assets and liabilities
shown below is a summary of the assets and liabilities of industrial power t ransmission
2008 2007
£m £m
assets
industrial power t ransmission 1337 1134
unallocated assets see below 273 393
asset held for sale – 34
t otal assets 1610 1561
liabilities
industrial power t ransmission 781 905
borrowings note 15 394 397
derivative financial instruments 09 01
current and deferred tax 16 19
t otal liabilities 1200 1322
secondary reporting format – geographical segments
the operations of the group are based in five main geographical areas the uk is the home country of the parent the main operations in the
principal territories are as follows
• united kingdom
• rest of europe
• united states and canada
• china
• other countries
the sales analysis in the table below is based on the location of the customer the analysis of assets and capital expenditure is based on the
location of the assets
revenue
continuing assets capital expenditure
2008 2007 2008 2007 2008 2007
£m £m £m £m £m £m
united kingdom 200 196 307 266 24 20
rest of europe 561 524 389 332 26 12
north america 576 567 401 383 08 04
china 96 51 92 28 21 03
other countries 293 255 148 125 03 04
1726 1593 1337 1134 82 43
unallocated assets – – 273 393 – –
asset held for sale – – – 34 – –
discontinued operations – – – – – 15
1726 1593 1610 1561 82 58
unallocated assets comprise
deferred tax asset 99 17 4
cash and cash equivalents 155 203
investment property 19 16
273 393
all revenue relates to the sale of goods
notes to the consolidated financial statements
8536renold ar 2008 acctstplayout 1  25608  1705  page 42 notes to the consolidated financial statements 43 renold plc annual report and accounts 2008
2 operating costs and exceptional items continuing operations
a operating profit is stated after chargingcrediting
2008 2007
£m £m £m £m
change in inventory of finished goods and work in progress 40 18
own work capitalised 01 –
other operating income 23 13
raw materials and consumables 723 601
other external charges 241 228
employee costs
gross wages and salaries 528 514
social security costs 80 71
pension costs 
– defined benefit 18 27
– defined contribution 08 07
cost of sharebased incentive plans 01 01
635 620
depreciation of property  plant and equipment
– owned assets 48 46
– leased assets 01 01
amortisation of intangible assets 02 02
operating leases – minimum lease payments
– plant and machinery 04 04
– property 17 14
21 18
profitloss on disposal of property  plant and equipment 04 01
research and development expenditure 04 04
auditors remuneration note 2b 03 03
t rade receivables impairment charge 01 01
foreign exchange 05 01
exceptional items note 2c 02 59
1604 1554
b auditors’ remuneration
2008 2007
£000 £000 £000 £000
t otal pwc ey t otal
fees payable to the company’s auditors for the audit 
of the group’s annual financial statements i 79 45 56 101
fees payable to the company’s auditors and their associates for other services
audit of the company’s subsidiaries pursuant to legislation 216 22 193 215
295 67 249 316
t axation services 161 87 105 192
recruitment and remuneration services – 3– 3
corporate finance services 72 5– 5
all other services 12 –23 23
t otal fees 540 162 377 539
in 200607 the group auditor also received fees of £19000 for audit services provided to group pension schemes in 200708 fees of 
£35000 are also payable to the group auditor for audit services to group pension schemes these were the only services provided to the
pension schemes 
i the group audit fee amount shown above for pwc in 2007 £45000 represents charges in respect of the audit for the year ended 
31 march 2006
8536renold ar 2008 acctstplayout 1  25608  1705  page 43 44 notes to the consolidated financial statements renold plc annual report and accounts 2008
notes to the consolidated financial statements
continued
2 operating costs and exceptional items continuing operations continued
c exceptional items
2008 2007
£m £m
uk burton conveyor chain factory restructuring – 03
profit on disposal of asset held for sale burton factory 26 –
profit and cash enhancement restructuring initiatives “p ace”
reorganisation and redundancy costs 24 29
exceptional inventory provision – 27
02 59
the p ace strategic initiative has resulted in exceptional costs associated with the restructuring of the continuing group’s manufacturing 
and distribution facilities the reorganisation and redundancy costs have originated in the uk £05 million 2007 – £15 million germany 
£16 million 2007 – £10 million and other countries £03 million 2007 – £04 million in 200607 exceptional inventory writeoffs were
charged in the uk £14 million germany £09 million the rest of europe £02 million and other countries £02 million
d employees and key management compensation
employee costs including directors are set out in 2a above key management personnel are represented by the board of directors and their
aggregate emoluments were as follows
2008 2007
£000 £000
short term employee benefits 870 890
post employment benefits 65 43
t ermination benefits – –
sharebased payments 68 68
1003 1001
further details of the remuneration of directors are provided in the auditable part of the directors’ remuneration report on pages 21 to 25
under the heading “remuneration package” 
the average monthly number of persons employed by the group during the year was
2008 2007
continuing discontinued continuing discontinued
united kingdom 729 – 743 179
germany 322 – 369 12
rest of europe 290 – 264 235
north america 408 – 395 9
china 478 – 37 –
other countries 250 – 248 –
2477 – 2056 435
3 net financing costs
2008 2007
£m £m £m £m
financial costs
interest payable on bank loans and overdrafts 27 26
costs associated with refinancing 02 02
interest cost on financial liabilities not at fair value through the income statement 29 28
interest cost on pension plan balances 118 111
t otal financial costs 147 139
financial revenue
interest receivable on bank deposits and cash equivalents 01 02
interest income on financial assets not at fair value through the income statement 01 02
expected return on pension plan assets 117 112
t otal financial revenue 118 114
net financing costs 29 25
8536renold ar 2008 acctstplayout 1  25608  1705  page 44 notes to the consolidated financial statements 45 renold plc annual report and accounts 2008
4 t axation
analysis of tax charge in the year
2008 2007
£m £m
united kingdom
uk corporation tax at 30 2007 – 30 02 10
less double taxation relief 02 10
– –
overseas taxes
corporation taxes 12 13
amount underprovided in previous years 04 –
current income tax charge 16 13
deferred tax
united kingdom – origination and reversal of temporary differences 05 –
impact of change in tax rate on deferred tax 04 –
overseas – origination and reversal of temporary differences 06 –
t otal deferred tax 15 –
t ax charge on loss on ordinary activities 31 13
analysed as
continuing 31 06
discontinued – 07
31 13
2008 2007
£m £m
t ax on items taken directly to equity
deferred tax on pension plan balances 57 11
impact of change in tax rate on deferred tax on pension plan balances 06 –
deferred tax on other direct movements on reserves – 01
63 12
factors affecting the group tax charge for the year
the group’s tax charge in future years will be affected by the profit mix effective tax rates in the different countries where the group
operates and utilisation of tax losses no deferred tax is recognised on the unremitted earnings of overseas subsidiaries
the tax assessed for the year is lower 2007 – higher than the standard rate of corporation tax in the uk of 30 2007 – 30 the differences
are explained below
2008 2007
£m £m
profitloss on ordinary activities before tax
continuing operations 93 14
discontinued operations 15 20
108 06
t ax on ordinary activities at 30 2007 – 30 32 02
effects of
permanent differences 04 09
nontaxable gain on disposal of asset held for sale 08 –
overseas tax rate differences 02 03
unrelieved tax losses – 34
utilisation of brought forward unrecognised tax losses 05 07
other temporary differences 02 18
effects of changes in tax rates 04 –
adjustments in respect of prior periods 04 –
t otal tax charge 31 13
8536renold ar 2008 acctstplayout 1  25608  1705  page 45 46 notes to the consolidated financial statements renold plc annual report and accounts 2008
notes to the consolidated financial statements
continued
5 discontinued operations
the results attributable to the discontinued operations are set out below 
2008 2007
t otal total
discontinued discontinued
£m £m
external revenue – 291
operating loss before exceptional items – 35
redundancy  restructuring and other exceptional items – 17
operating loss – 18
bank interest – 02
loss before tax – 20
t axation – –
loss after tax – 20
adjustments to fair value less costs to sell and losses on disposal 15 108
t axation note 4 – 07
– 115
profitloss for the year on discontinued operations 15 135
discontinued exceptional items
within discontinued operations the exceptional item of £15 million represents a £13 million net release of provisions in relation to claims 
on various disposals and £02 million of proceeds received from the purchaser of the machine t ools business 
discontinued employment costs comprise
2008 2007
£m £m
gross wages and salaries – 88
social security costs – 22
gain arising on pension curtailment – 07
– 103
the cash flows attributed to discontinued operations comprise
2008 2007
£m £m
from operating activities – 47
from investing activities – 17
from financing activities – 16
deferred consideration of £135 million 2007 – £15 million on the machine t ools disposal has not been recognised in these financial
statements and will only be recognised when there is greater certainty of recovery 
in 2007 i external revenue of £291 million was reported of which £163 million related to automotive operations and £128 million related 
to machine t ools operations ii operating loss before exceptional items of £35 million was reported of which £22 million related to
automotive operations and £13 million related to machine t ools operations iii redundancy  restructuring and other exceptional items 
of £17 million was reported of which £10 million related to automotive operations and £07 million related to machine t ools operations 
iv operating loss of £18 million was reported of which £12 million related to automotive operations and £06 million related to machine
t ools operations v bank interest cost of £02 million was reported of which £01 million related to automotive operations and £01 million
related to machine t ools operations vi a loss before and after tax of £20 million was reported of which £13 million related to automotive
operations and £07 million related to machine t ools operations vii adjustments to fair value less costs to sell and losses on disposal of 
£108 million was reported of which £62 million related to automotive operations and £46 million related to machine t ools operations 
viii a taxation charge on discontinued operations of £07 million was reported which wholly related to automotive operations and 
ix a loss for the year on discontinued operations of £135 million was reported of which £82 million related to automotive operations and
£53 million related to machine t ools operations
8536renold ar 2008 acctstplayout 1  25608  1705  page 46 notes to the consolidated financial statements 47 renold plc annual report and accounts 2008
6 earnings per share
earnings per share are calculated by reference to the earnings for the year and the weighted average number of shares in issue during the 
year as follows
2008 2007
weighted weighted
average average 
number per share number per share
earnings of shares amount earnings of shares amount
£m thousands pence £m thousands pence
basic eps
earnings attributed to ordinary shareholders 77 69807 110 127 69501 183
effect of dilutive securities
employee share options – 1589 02 – 569 02
diluted eps 77 71396 108 127 70070 181
earnings per share from continuing operations
basic eps 77 69807 110 127 69501 183
post tax profitloss from discontinued operations note 5 –– 20 29
adjustments to fair value less costs to sell and losses on disposal note 5 15 21 115 166
basic eps from continuing operations 62 69807 89 08 69501 12
inclusion of the dilutive securities shown above in the calculation of basic eps from continuing operations changes the amount shown 
to 87p 2007 – 12p
earnings per share from discontinued operations
basic eps
post tax profitloss from discontinued operations note 5 15 69807 21 20 69501 29
adjustments to fair value less costs to sell and losses on disposal note 5–– 115 166
basic eps from discontinued operations 15 69807 21 135 69501 195
inclusion of the dilutive securities shown above changes the amounts shown for basic eps for discontinued operations to 21p 2007 – 193p
adjusted eps for continuing activities
basic eps from continuing operations 62 69807 89 08 69501 12
effect of exceptional items after tax 03 04 50 72
adjusted eps 59 69807 85 58 69501 84
inclusion of the dilutive securities shown above in the calculation of adjusted eps changes the amount shown to 83p 2007 – 83p
the adjusted earnings per share numbers have been provided in order to give a useful indication of underlying performance by the exclusion 
of exceptional items
7 dividends
no ordinary dividend payments were paid or proposed in either the current or prior year 
8536renold ar 2008 acctstplayout 1  25608  1705  page 47 48 notes to the consolidated financial statements renold plc annual report and accounts 2008
notes to the consolidated financial statements
continued
8 intangible assets
computer 
goodwill software t otal
£m £m £m
cost
at 1 april 2007 152 22 17 4
exchange adjustment 01 04 03
additions 12 07 19
at 31 march 2008 163 33 196
accumulated amortisation and impairment
at 1 april 2007 – 16 16
exchange adjustment –03 03
amortisation charge –02 02
at 31 march 2008 – 21 21
net book amount at 31 march 2008 163 12 175
net book amount at 31 march 2007 152 06 158
computer
goodwill software t otal
£m £m £m
cost
at 1 april 2006 17 1 18 189
exchange adjustment 19 01 20
additions –05 05
at 31 march 2007 152 22 174
accumulated amortisation and impairment
at 1 april 2006 – 16 16
exchange adjustment – 01 01
amortisation charge –01 01
at 31 march 2007 –16 16
net book amount at 31 march 2007 152 06 158
net book amount at 31 march 2006 17 1 02 17 3
goodwill is tested for impairment at least annually and following that exercise in 200708 no impairment charge has been recognised 
in the period 2007 – nil
for the purposes of impairment testing of goodwill these businesses are defined as cash generating units cgu 
the recoverable amount of each cgu has been determined on a value in use basis v alue in use is calculated as the net present value of cash
flows derived from detailed financial plans for the next financial period and strategic forecasts thereafter for a total period of five years 
a terminal value is recognised based on a constant cash flow into perpetuity  the most significant assumptions relevant to the determination
of the recoverable amount are the year one forecasts growth rate and discount rate the cash flows are extrapolated from the approved plan
which is the basis of the year one forecasted at a growth rate using the longterm growth rate published by the oecd or other reliable source
for the territory in which the cgu is based a growth rate of 31 2007 – 31 has been used for jeffrey chain usa 36 2007 – 36 for 
ace chains australia and 81 2007 – na for renold hangzhou china
a discount rate of 9 2007 – 111 has been used representing the group’s estimated weighted average cost of capital and is used by
management to assess operating performance and to evaluate future investment proposals
management believes that no reasonably possible change in any of the key assumptions would cause the carrying value of each unit to
materially exceed its recoverable amount
the carrying amounts of goodwill allocated to cashgenerating units are as follows
2008 2007
£m £m
jeffrey chain usa 147 148
renold hangzhou china 12 –
ace chains australia 04 04
163 152
8536renold ar 2008 acctstplayout 1  25608  1705  page 48 notes to the consolidated financial statements 49 renold plc annual report and accounts 2008
9 property  plant and equipment
land and plant and
buildings equipment t otal
£m £m £m
cost
at 1 april 2007 188 885 107 3
exchange adjustment 15 58 7 3
acquisitions – 12 12
additions 01 7 4 7 5
disposals 05 12 17
at 31 march 2008 199 1017 1216
aggregate depreciation
at 1 april 2007 20 713 733
exchange adjustment 01 46 47
charge for the year 03 46 49
disposals – 08 08
at 31 march 2008 24 797 821
net book amount at 31 march 2008 175 220 395
net book amount at 31 march 2007 168 17 2 340
land and plant and
buildings equipment t otal
property  plant and equipment £m £m £m
cost
at 1 april 2006 210 892 1102
exchange adjustment 07 27 34
additions 01 52 53
t ransfer to investment property 17 – 17
disposals
1
– 41 41
reclassification 01 01 –
t ransfers
2
– 10 10
at 31 march 2007 188 885 1073
aggregate depreciation
at 1 april 2006 18 702 720
exchange adjustment – 20 20
charge for the year 03 44 47
t ransfer to investment property 01 – 01
disposals – 23 23
t ransfers
2
– 10 10
at 31 march 2007 20 713 733
net book amount at 31 march 2007 168 172 340
net book amount at 31 march 2006 192 190 382
1 additions include £15 million in respect of discontinued operations following the sale of the discontinued businesses this amount is also recorded as a component 
of disposals
2 prior to sale of discontinued businesses plant and equipment with a net book amount of £nil cost £1 million depreciation £1 million was transferred from amounts
previously classified within assets of discontinued operations
net book amount for plant and equipment includes £03million 2007 – £04 million in respect of assets acquired under finance leases
future capital expenditure
at 31 march 2008 capital expenditure contracted for but not provided for in these accounts amounted to £13million 2007 – £01 million
8536renold ar 2008 acctstplayout 1  25608  1705  page 49 50 notes to the consolidated financial statements renold plc annual report and accounts 2008
notes to the consolidated financial statements
continued
10 investment property
£m
cost
at 1 april 2007 17
exchange adjustment 03
31 march 2008 20
aggregate depreciation
at 1 april 2007 01
charge for the year –
at 31 march 2008 01
net book amount at 31 march 2008 19
net book amount at 31 march 2007 16
cost
t ransferred from property  plant and equipment note 9 17
at 31 march 2007 17
aggregate depreciation
t ransferred from property  plant and equipment note 9 01
charge for the year –
at 31 march 2007 01
net book amount at 31 march 2007 16
there are two relevant rental agreements the first ran for one year from 3 august 2006 and the second commenced for a period of nine years
from 3 august 2007  this later agreement is terminable by the tenant at the end of each three year period the rental income recognised 
in the period was £03 million 2007 – £02 million the total future minimum lease payments under the noncancellable term amount to 
£05 million 2007 – £08 million and of this £03 million 2007 – £02 million is due in the next financial year and £02million 2007 – £06 million
is due in the period after one year but not later than five years from the balance sheet date
the property has been accounted for on a cost model basis the most recent valuation of the calais property was conducted in june 2005 by
colliers cre chartered surveyors and international property consultants at that date the fair value of the property was assessed at £17 million
the directors are not aware of any circumstances that have arisen to materially alter that external valuation
11 inventories
2008 2007
£m £m
materials 71 52
work in progress 93 68
finished products 246 211
410 331
inventories pledged as security for liabilities amounted to £230 million 2007 – £17 0 million
writeoffs taken to the income statement amount to £03 million 2007 – £11 million plus an exceptional charge of £27 million 
8536renold ar 2008 acctstplayout 1  25608  1705  page 50 notes to the consolidated financial statements 51 renold plc annual report and accounts 2008
12 trade and other receivables
2008 2008 2007 2007
current noncurrent current noncurrent
£m £m £m £m
t rade receivables 314 – 267 –
less provision for impairment of receivables 06 – 05 –
t rade receivables – net 308 – 262 –
other receivables 24 02 25 02
prepayments and accrued income 20 01 14 02
352 03 301 04
 financial assets
the group has recognised a loss of £01 million 2007 – £01 million for the impairment of its trade receivables during the year  the group 
has no significant concentration of credit risk
the group has a concentration of translational and transactional foreign exchange risk in both us dollars and euros however  the group
hedges against these risks
t rade receivables are noninterest bearing and are generally on 3090 days’ terms see note 26e for credit risk policy 
as at 31 march the ageing analysis of trade receivables is as follows
neither past past due but not impaired
due nor 
t otal impaired 30 days 3060 days 6090 days 90 days
£m £m £m £m £m £m
2008 308 272 26 05 03 02
2007 262 235 21 03 02 01
2008 2007
£m £m
movement on impairment provision
at 1 april 2007 05 06
exchange adjustment 01 02
net charge to income statement 02 01
utilised in year through assets written off 02 02
acquisitions and disposals – 02
at 31 march 2008 06 05
13 cash and cash equivalents
2008 2007
£m £m
cash at bank and in hand 81 152
shortterm bank deposits 74 51
cash and cash equivalents 155 203
in the group cash flow statement net cash and cash equivalents are shown after deducting bank overdrafts as follows
2008 2007
£m £m
cash and cash equivalents as shown above 155 203
less overdrafts note 15 13 49
net cash and cash equivalents 142 154
8536renold ar 2008 acctstplayout 1  25608  1705  page 51 52 notes to the consolidated financial statements renold plc annual report and accounts 2008
notes to the consolidated financial statements
continued
14 asset held for sale
2008 2007
£m £m
property –34
on 4 january 2008 the former chain manufacturing facility located at burtonupont rent was sold generating proceeds of £64 million and
realising an exceptional gain in the income statement of £26 million after costs associated with the disposal of the property of £04 million 
15 borrowings
2008 2007
£m £m
amounts falling due within one year
overdrafts 13 49
bank loans 69 28
obligations under finance leases 01 01
83 78
amounts falling due after more than one year
bank loans 305 312
obligations under finance leases 01 02
306 314
preference shares 05 05
311 319
t otal borrowings note 26e 394 397
all financial liabilities excluding finance lease obligations above are carried at amortised cost
secured borrowings
included in group borrowings are secured borrowings of £347 million 2007 – £381 million security is provided by fixed and floating charges
over uk assets including certain property  plant and equipment and the assets of certain overseas subsidiaries
finance leases
the group has finance leases for various items of plant and machinery  these leases have terms of renewal but no purchase options 
or escalation clauses
2008 2007 
£m £m
obligations under finance leases
minimum payments under finance leases are as follows
amounts payable within one year 01 01
amounts payable between two and five years 01 03
t otal gross payments 02 04
less finance charges allocated to future periods – 01
02 03
allocated as
current obligations 01 01
noncurrent obligations 01 02
02 03
preference shares
all payments of dividends on the 6 cumulative preference shares have been paid on the due dates the preference shares have the 
following rights
i a fixed cumulative preferential dividend at the rate of 6 per annum payable half yearly on 1 january and 1 july in each year
ii they rank both with regard to dividend including any arrears to the commencement of a winding up and return of capital in priority 
to all other stock or shares of the company but with no further right to participate in profits or assets
iii there is no right to attend or vote either in person or by proxy  at any general meeting of the company or to have notice of any such
meeting unless the dividend on the preference stock is in arrears for six calendar months
iv there is no redemption entitlement 
there is no significant difference between the carrying value of financial liabilities and their equivalent fair value
8536renold ar 2008 acctstplayout 1  25608  1705  page 52 notes to the consolidated financial statements 53 renold plc annual report and accounts 2008
16 trade and other payables
2008 2008 2007 2007
current noncurrent current noncurrent
£m £m £m £m
t rade payables 232 – 203 –
other tax and social security 37 – 27 –
other payables 24 – 36 –
accruals and deferred income 125 07 95 12
418 07 361 12
 financial liabilities carried at cost
t rade payables are noninterest bearing and are normally settled within 60day terms the group does have a concentration of translational
foreign exchange risk in both us dollars and euro’s however the group hedges against this risk
17 provisions
pace
restructuring business contingent other total
initiative restructuring consideration provisions provisions
£m £m £m £m £m
at 1 april 2007 17 04 – 31 52
arising during the year 21 08 05 – 34
released in year – – – 13 13
utilised in year 12 06 – 11 29
at 31 march 2008 26 06 05 07 44
2008 2007
allocated as £m £m
current provisions 39 52
noncurrent provisions 05 –
44 52
pace restructuring initiatives
as explained in note 2c the group is reorganising its manufacturing and distribution facilities this initiative includes significant changes 
in the manufacturing footprint through the migration to low cost countries and associated changes in the direct labour headcount the
process is under way and the substantial part of the provision remaining at 31 march 2008 will be expended in 200809
business restructuring
this provision relates to the reorganisation and restructuring of a uk based business and will be completed within the next financial year 
contingent consideration
a provision has been established following the acquisition of 90 of the equity interest in hangzhou shanshui “hzss” see note 27 
for details
other provisions
provisions have been retained in respect of warranty claims in relation to former discontinued operations whilst it is anticipated that the
provisions will be utilised within the following year  the actual timing remains uncertain pending agreement of remedial actions with 
the purchaser 
8536renold ar 2008 acctstplayout 1  25608  1705  page 53 54 notes to the consolidated financial statements renold plc annual report and accounts 2008
notes to the consolidated financial statements
continued
18 deferred tax
assets liabilities net
2008 2007 2008 2007 2008 2007
£m £m £m £m £m £m
accelerated capital allowances 30 28 22 18 08 10
pension plans 47 110 01 01 48 111
t ax losses 25 38 03 02 28 40
other temporary differences 03 02 02 02 01 –
t ax assetliabilities 99 17 4 16 13 83 161
net off liabilitiesassets 16 13 16 13 – –
net deferred tax assets 83 161 – – 83 161
the net deferred tax asset recoverable after more than one year is £83million 2007 – £161 million
the movement in the net deferred tax asset is as follows
recognised recognised
opening exchange in income directly in closing
balance adjustments statement equity balance
2008 £m £m £m £m £m
accelerated capital allowances 28 02 04 – 30
pension plans 110 02 02 63 47
t ax losses 38 01 14 – 25
other temporary differences 02 – 01 – 03
17 4 01 13 63 99
recognised recognised
opening exchange in income directly in closing 
balance adjustments statement equity balance
2007 £m £m £m £m £m
accelerated capital allowances 23 – 05 – 28
pension plans 126 01 04 11 110
t ax losses 32 01 07 – 38
other temporary differences 03 – 04 01 02
184 02 04 12 17 4
the movement in the net deferred tax liability in the year is as follows
recognised
opening exchange in income closing
balance adjustments statement balance
2008 £m £m £m £m
accelerated capital allowances 18 01 03 22
pension plans 01 – – 01
t ax losses 02 – 01 03
other temporary differences 02 – – 02
13 01 02 16
recognised
opening exchange in income closing
balance adjustments statement balance
2007 £m £m £m £m
accelerated capital allowances 09 – 09 18
pension plans 01 – – 01
t ax losses 02 – – 02
other temporary differences 03 – 05 02
09 – 04 13
during the year the group has reported an operating profit of £120 million before exceptional items from continuing operations the
businesses in all jurisdictions where deferred tax assets have been recognised will more likely than not generate suitable profits based on
approved management forecasts from which the future reversal of the underlying timing differences can be deducted
8536renold ar 2008 acctstplayout 1  25608  1705  page 54 notes to the consolidated financial statements 55 renold plc annual report and accounts 2008
18 deferred tax continued
a deferred tax asset amounting to £130 million 2007 – £80 million has not been recognised in respect of losses in certain subsidiaries where
based on available evidence it is considered unlikely that the losses will be recovered within the foreseeable future
19 pensions
the group operates a number of pension plans throughout the world covering many of its employees the principal funds are those in 
the united kingdom i the renold group pension scheme ‘rgps’ ii the jones  shipman plc retirement benefits plan 1971 and iii 
the renold supplementary pension scheme 1967 ‘rsps’ these three plans are funded plans of the defined benefit type with assets held 
in separate trustee administered funds the renold group money purchase pension scheme is a defined contribution type plan and
membership is available to all new employees the main defined benefit plans having been closed to new employees in 2002 as a result 
of the plans’ closure the age profile of the active membership is increasing and consequently current service cost is likely to increase as
members of the plans approach retirement
overseas employees participate in a variety of different pension arrangements of the defined contribution or defined benefit type funded 
in accordance with local practice
the most recent actuarial valuations of the renold group pension scheme and the renold supplementary pension scheme 1967 were at 
5 april 2004 the valuations of both plans used the projected unit method and were carried out by barnett waddingham professionally
qualified actuaries the last valuation of the jones  shipman plc retirement benefits plan 1971 was at april 2006 also carried out by 
barnett w addingham
for all defined benefit plans operated by the group the disclosures in the accounts are based on the most recent actuarial valuations where
material these have been updated to the balance sheet date by qualified independent actuaries the disclosures provided below are
presented on a weighted average basis where appropriate
the principal financial assumptions used to calculate plan liabilities as at 31 march 2008 are presented below the assumptions adopted by 
the plans’ actuaries represent the best estimates chosen from a range of possible actuarial assumptions which due to the timescale covered
may not necessarily be borne out in practice
uk overseas
2008 2007 2008 2007
rate of increase in pensionable salaries 39 36 38 38
rate of increase in pensions in payment and deferred pensions 33 30 25 24
discount rate 66 54 61 58
inflation assumption 34 31 27 27
expected return on plan assets 65 65 80 80
plan assets are stated at their market values at the respective balance sheet dates and overall expected rates of return are established by
applying published brokers’ forecasts to each category of plan assets
the predominant defined benefit obligation for funded plans within the group resides in the uk £1680 million of the £1851million group
obligation for funded plans in addition to the assumptions shown above mortality assumptions have a significant bearing on the calculated
obligation the assumed life expectations for the renold group pension scheme on retirement at age 65 are as follows different rates apply
for the renold supplementary pension scheme 1967 and the jones  shipman plc retirement benefit plan
2008 2007
retiring today
males 195 17 0
females 222 205
retiring in 20 years
males 207 191
females 233 220
the postretirement mortality tables used for the plan are the p a92 series tables published by the uk actuarial profession the mortality rates
for the renold group pension scheme which represents approximately 23rds of the uk defined benefit obligation are based on average 
year of birth for both nonpensioners and pensioners with an allowance for the medium cohort projection an uplift of 40 has been applied
to the standard rates the effect of this adjustment is to reduce life expectancy  the assumed life expectancy is longer for the other two 
uk defined benefit plans
8536renold ar 2008 acctstplayout 1  25608  1705  page 55 56 notes to the consolidated financial statements renold plc annual report and accounts 2008
notes to the consolidated financial statements
continued
19 pensions
sensitivity analysis
assumption                                                                                                                                                                                                   change in assumption impact on plan liabilities
discount rate increasedecrease by 05 decreaseincrease by 65
rate of inflation increasedecrease by 05 increasedecrease by 40
rate of salary growth increasedecrease by 05 increasedecrease by 10
rate of mortality increase by 1 year increase by 35
 assuming assumption for real salary growth unchanged
 calculated using a reduction to assumed mortality rates of 125 at all ages this is broadly equivalent to an increase in life expectancy of 1 year at age 65
the expected longterm rates of return and market values of assets of the principal defined benefit plans of the group together with the
present value of plan liabilities are shown below it should be noted that the market values of the plans’ assets are stated as at the group’s
year end it is not intended to realise the assets in the shortterm and the value may therefore be subject to significant change before being
realised the present values of the plans’ liabilities are derived from cash flow projections over long periods and are thus inherently uncertain
the fair values of plan assets were
uk overseas t otal
2008 2007 2008 2007 2008 2007
£m £m £m £m £m £m
equities 824 786 66 75 890 861
bonds 744 858 36 38 780 896
other 17 – 50 38 67 38
t otal market value of assets 1585 1644 152 151 1737 1795
present value of plan liabilities 1680 1925 369 350 2049 227 5
deficits in plans 95 281 217 199 312 480
pension commitments
pension obligations
the movement in the present value of the defined benefit obligation is as follows
2008 2007
uk overseas t otal uk overseas t otal
£m £m £m £m £m £m
opening obligation 1925 350 2275 1956 365 2321
current service cost 16 07 23 21 07 28
interest cost 102 16 118 96 15 111
contributions by plan participants 05 02 07 07 02 09
actuarial gains and losses 268 11 279 45 09 36
gains on curtailments –05 05 07 01 08
benefits paid 100 18 118 103 17 120
exchange adjustment – 28 28 –30 30
closing obligation 1680 369 2049 1925 350 227 5
the total defined benefit obligation can be analysed as follows
obligations related to funded pension plans 1680 171 1851 1925 17 0 2095
obligations related to unfunded pension plans – 198 198 – 180 180
1680 369 2049 1925 350 227 5
8536renold ar 2008 acctstplayout 1  25608  1705  page 56 notes to the consolidated financial statements 57 renold plc annual report and accounts 2008
19 pensions continued
pension assets
the movement in the present value of the defined benefit plan assets is as follows
2008 2007
uk overseas t otal uk overseas t otal
£m £m £m £m £m £m
opening assets 1644 151 1795 1627 155 1782
expected return on plan assets 105 12 117 101 11 112
actuarial gains and losses 110 09 119 35 08 27
contributions by the employer 41 08 49 47 07 54
contributions by plan participants 05 02 07 07 02 09
benefits paid 100 09 109 103 08 111
exchange adjustment – 03 03 –24 24
closing assets 1585 152 1737 1644 151 1795
balance sheet reconciliation
plan obligations 1680 369 2049 1925 350 227 5
plan assets 1585 152 1737 1644 151 1795
retirement benefit obligation 95 217 312 281 199 480
the net amount of actuarial gains and losses taken to the statement of recognised income and expense is as follows
2008 2007
£m £m
actuarial gains and losses arising on plan obligations 279 36
actuarial gains and losses arising on plan assets 119 27
net actuarial gains and losses 160 09
the actual loss on plan assets was £02 million 2007 – gain £85 million
an analysis of amounts charged to operating costs is set out below
2008 2007
£m £m
operating costs – continuing
current service cost 23 28
gains on curtailments 05 01
18 27
amounts relating to discontinued operations
gains on curtailments – 07
t otal cost of retirement benefits 18 20
history of experience gains and losses
uk
2008 2007 2006 2005
experience adjustments arising on plan assets
amount £m 110 35 145 33
percentage of plan assets 69 21 89 23
experience adjustments arising on plan liabilities
amount £m 268 45 152 204
percentage of present value of plan liabilities 160 23 7 8 115
present value of plan liabilities £m 1680 1925 1956 177 2
fair value of plan assets £m 1585 1644 1627 1424
deficit £m 95 281 329 348
8536renold ar 2008 acctstplayout 1  25608  1705  page 57 58 notes to the consolidated financial statements renold plc annual report and accounts 2008
notes to the consolidated financial statements
continued
19 pensions continued
overseas
2008 2007 2006 2005
experience adjustments arising on plan assets
amount £m 09 08 17 12
percentage of plan assets 59 53 110 97
experience adjustments arising on plan liabilities
amount £m 11 09 63 –
percentage of present value of plan liabilities 30 26 17 3 –
present value of plan liabilities £m 369 350 365 308
fair value of plan assets £m 152 151 155 124
deficit £m 217 199 210 184
t otal
2008 2007 2006 2005
experience adjustments arising on plan assets
amount £m 119 27 162 45
percentage of plan assets 69 15 91 29
experience adjustments arising on plan liabilities
amount £m 279 36 215 204
percentage of present value of plan liabilities 136 16 93 98
present value of plan liabilities £m 2049 227 5 2321 2080
fair value of plan assets £m 1737 1795 1782 1548
deficit £m 312 480 539 532
the cumulative amount of actuarial losses recognised in equity since 4 april 2004 was £43 million 2007 – £203 million the group expects
to contribute approximately £48million 2007 – £53 million to defined benefit plans in the year to 31 march 2009
as a result of the deficits in the main uk plans it has been agreed with the actuaries and trustees that under existing arrangements annual
lump sum payments of £22 million will be paid to the rgps plan and £07million to the rsps plan over the average remaining service lives of
members being fifteen and twelve years respectively 
the group operates a number of defined contribution plans the cost for the period was £08 million 2007 – £07 million there were
outstanding contributions in creditors of £nil 2007 – £nil at the balance sheet date
the assets and liabilities shown above include a net £nil 2007 – £nil balance in respect of a closed south african defined benefit pension
scheme the group has not recognised the pension surplus within that scheme of £11 million 2007 – £11 million after expected additional
payments to pensioner members are taken into account the company is undertaking a review of local regulations to clarify if the surplus 
can be repaid to the group
20 called up share capital
authorised issued
2008 2007 2008 2007
£m £m £m £m
equity interests
ordinary shares of 25p each 231 231 175 17 4
at 31 march 2008 the issued ordinary share capital comprised 70022194 2007 – 69659807 ordinary shares of 25p each during the year the
company issued 362387 2007 – 230587 ordinary shares of 25p each for a cash consideration of £246570 2007 – £138192 by the exercise of
options under the executive and the savings related share option schemes
8536renold ar 2008 acctstplayout 1  25608  1705  page 58 notes to the consolidated financial statements 59 renold plc annual report and accounts 2008
21 sharebased payments
details of the sharebased payment arrangements are provided in the directors’ remuneration report on pages 21 to 25
share options have been granted under the executive share option schemes and the savings related share option schemes at 31 march 2008
unexercised options for ordinary shares amounted to 5224805 2007 – 3698762
the fair value per option granted in the period and the assumptions used in the calculation are as follows
2008 2007
executive share option scheme executive share option scheme
grant date 31308 271107 267 06 301106 2107
share price at date of grant 79p 925p 62p 1065p 119p
exercise price 759p 9255p 616p 1001p 1142p
number of employees 911 12 1 9
shares under option 1576690 660000 535000 120000 360000
vesting period years 33 333
expected volatility 321 325 291 295 303
option life years 10 10 10 10 10
expected life years 66 666
risk free interest rate 39 45 47 49 52
assumed dividends expressed as a dividend yield zero zero 17 09 09
possibility of ceasing employment before vesting zero zero 8 zero zero
fair value per option 319p 375p 194p 398p 449p
probability of meeting market based vesting conditions 60 na na na na
the expected volatility is based on historical volatility over the last three years the expected life is the average expected period to exercise
based on historical data the risk free rate of return is the yield on zerocoupon uk government bonds of a term consistent with the assumed
option life dividend yields indicated above are an expression of assumed dividends over the respective periods included in the calculation
these assumptions may not be borne out in practice a reconciliation of option movements over the year to 31 march 2008 is shown below
executive share option schemes
2008 2007
weighted weighted 
average average
exercise exercise 
number price number price
outstanding at 1 april 2831542 9379p 2186849 9868p
granted 2236690 8083p 1015000 8481p
lapsed 174042 15931p 127 307 15519p
forfeited 91000 10265p 98000 8214p
exercised 240500 7468p 145000 6307p
outstanding at 31 march 4562690 8576p 2831542 9379p
exercisable at 31 march 1009000 8209p 223202 12871p
savings related share option scheme
2008 2007
weighted weighted 
average average
exercise exercise 
number price number price
outstanding at 1 april 867220 5443p 1404450 5453p
granted –– ––
lapsed 3856 5430p 222088 5506p
forfeited 79362 5434p 229555 5435p
exercised 121887 5493p 85587 5461p
outstanding at 31 march 662115 5434p 867 220 5443p
exercisable at 31 march 48908 5491p 36090 5454p
8536renold ar 2008 acctstplayout 1  25608  1705  page 59 60 notes to the consolidated financial statements renold plc annual report and accounts 2008
notes to the consolidated financial statements
continued
21 sharebased payments continued
executive share option scheme
2008 2007
weighted weighted average weighted weighted average
range of average remaining life average remaining life
exercise exercise number of exercise number of
prices price shares expected contractual price shares expected contractual
585p to 743p 6361p 856000 30 70 6334p 1055000 45 7 5
765p to 945p 8188p 3011690 50 90 8489p 890000 41 7 1
1001p to 1200p 11141p 530000 43 81 1120p 577 500 57 87
13783p to 24267p 18909p 165000 – 07 18936p 309042 – 17
savings related share option scheme
2008 2007
weighted weighted average weighted weighted average
range of average remaining life average remaining life
exercise exercise number of exercise number of
prices price shares expected contractual price shares expected contractual
543p to 5508p 5434p 662115 09 12 5443p 867 220 28 31
the weighted average share price during the period for options exercised over the year was 10474p 2007 – 11107p the total charge for the
year relating to employee share based payment plans was £142000 2007 – £110000 all of which related to equitysettled sharebased
transactions after deferred tax the total charge was £142000 2007 – £110000
the middle market price of ordinary shares at 31 march 2008 was 790 pence and the range of prices during the year was 665 pence 
to 1405 pence
22 analysis of changes in shareholders’ equity
share currency
share premium retained translation other total 
capital account earnings reserve reserves equity
£m £m £m £m £m £m
at 1 april 2006 17 4 60 145 27 – 406
loss for the year – – 127 – – 127
foreign exchange translation difference – – – 48 – 48
actuarial gains and losses – – 09 – – 09
gains on fair value of hedging net investments in foreign operations – – – 09 – 09
t ax on items recognised directly in equity – – 12 – – 12
share premium – 01 – – – 01
employee share options
– value of employee services – – 01 – – 01
at 31 march 2007 17 4 61 16 12 – 239
profit for the year – – 7 7 – – 7 7
recycling of losses on cash flow hedges to the income statement –––– 02 02
net losses on cash flow hedges taken to equity –––– 08 08
foreign exchange translation difference – – – 07 – 07
actuarial gains and losses – – 160 – – 160
gains on fair value of hedging net investments in foreign operations – – – 06 – 06
t ax on items recognised directly in equity – – 63 – – 63
share premium – 02 – – – 02
employee share options
– value of employee services – – 01 – – 01
– proceeds from shares issued 01 – – – – 01
at 31 march 2008 17 5 63 191 13 06 410
the currency translation reserve is used to record exchange differences arising from the translation of financial statements of foreign
operations and the proportion of the gains or losses on hedging instruments used to hedge against movements in net investments in foreign
operations that are determined to be effective
other reserves records the portion of the gain or loss on a hedging instrument in a cash flow hedge that is determined to be an effective hedge
cumulative goodwill written off directly to group reserves at 31 march 2008 subsequent to the capital reorganisation in january 1985
amounted to £20million 2007 – £20 million
included in retained earnings is an amount of £60million net of tax 2007 – £103 million relating to the revaluation of freehold property 
that was undertaken at the date of ifrs adoption the amount is not distributable until it is realised
8536renold ar 2008 acctstplayout 1  25608  1705  page 60 notes to the consolidated financial statements 61 renold plc annual report and accounts 2008
23 operating lease obligations
the group has entered into commercial leases on commercial properties and plant and equipment
at the end of the year there were the following minimum rental commitments under noncancellable operating leases
2008 2007
properties equipment properties equipment
£m £m £m £m
within one year 21 04 21 04
between two and five years 66 05 65 07
over five years 157 – 17 2 –
244 09 258 11
certain of the leased properties have been sublet and the future minimum sublease payments expected to be received under noncancellable
sublease agreements is £03 million 2007 – £08 million
24 contingent liabilities
performance guarantees given to third parties in respect of group companies were £37 million 2007 – £39 million
25 additional cash flow information
reconciliation of profit before tax to net cash flows from operations
2008 2007
£m £m
cash generated from operations
continuing operations
profit before taxation 93 14
depreciation and amortisation 51 49
profitloss on plant and equipment disposals 30 01
equity share plans 01 01
net finance costs 29 25
increasedecrease in inventories 50 12
increase in receivables 30 23
offset of proceeds from disposal of business 24 41
decreaseincrease in provisions 03 17
movement on pension plans 40 35
movement in derivative financial instruments – 01
cash generated from continuing operations 45 103
discontinued operations
profitloss before taxation 15 20
loss on plant and equipment disposals – 02
net finance costs – 02
increase in inventories – 03
decrease in receivables – 22
decrease in payables – 20
decrease in provisions 13 12
offset of proceeds from disposal of businesses 02 –
movement on pension plans – 18
cash generatedabsorbed by discontinued operations – 47
cash generated from operations 45 56
8536renold ar 2008 acctstplayout 1  25608  1705  page 61 62 notes to the consolidated financial statements renold plc annual report and accounts 2008
notes to the consolidated financial statements
continued
25 additional cash flow information continued
reconciliation of net increase in cash and cash equivalents to movement in net debt
2008 2007
£m £m
decreaseincrease in cash and cash equivalents 23 62
change in net debt resulting from cash flows 13 61
finance lease inception – 02
foreign currency translation differences 09 14
change in net debt during the period 45 13
net debt at start of year 194 207
net debt at end of year 239 194
net debt comprises
cash and cash equivalents note 13 155 203
t otal borrowings note 15 394 397
239 194
26 financial instruments
these notes should be read in conjunction with the narrative disclosures in the financial review on pages 11 to 14
a sensitivity analysis of interest and foreign exchange movements has been performed the results of this analysis have proven to be too
immaterial to disclose
a the balance sheet position on financial instruments is set out below
2008 2007
£m £m
current assets
forward foreign currency contracts – cash flow hedge 01 –
current liabilities
forward foreign currency contracts – cash flow hedge 09 01
noncurrent liabilities
interest rate swaps – –
the cash flow hedges of the expected future transactions in euro’s and us dollar’s were assessed to be highly effective a net unrealised loss
of £05 million in respect of euro contracts and a loss of £04 million in respect of us dollar contracts was included in equity as at 31 march
2008 a loss of £02 million was transferred to operating costs in the income statement in the period no deferred tax asset is recognised
the current asset foreign exchange contract has been deemed ineffective the resulting charge has been taken to the income statement
b shortterm receivables and payables
the carrying amount of shortterm receivables and payables being those with a remaining life of less than one year is deemed to
approximate to their fair value
c interest rate swap
the notional principal amount of the outstanding interest rate swap contracts at 31 march 2008 was 44 million 1 april 2007 – 94 million
at 31 march 2008 the fixed interest rate was 69 1 april 2007 – 7 0 and floating rate was 64 us libor plus 100 basis points
the interest rate swap amount is less than £01 million and its carrying amount and the gain or loss in the year is therefore not material 
the termination date is 30 march 2009
d hedge of net investment in foreign entity and foreign exchange contracts
the group has us dollar denominated borrowings which it has designated as a hedge of the net investment in its subsidiaries in the usa
the carrying value of the us dollar borrowings at 31 march 2008 was £65 million 1 april 2007 – £64 million a foreign exchange gain of
£01million 2007 – gain of £09 million on translation of the borrowings into sterling is included as a part of the hedging reserve movement
gains or losses on the retranslation of this borrowing are transferred to equity to offset any gains or losses on translation of the net
investment in the usa subsidiaries 
8536renold ar 2008 acctstplayout 1  25608  1705  page 62 notes to the consolidated financial statements 63 renold plc annual report and accounts 2008
26 financial instruments continued
e currency and interest rate profile of financial liabilities of the group
weighted 
weighted average 
average period for
interest which rate fixed floating
rate is fixed rate rate t otal
currency  y ears £m £m £m
2008
sterling
– financial liabilities 7 1 30 02 130 132
– preference shares 60  05 – 05
us dollar 69 18 65 27 92
euro – – – 108 108
other –– 05 52 57
7 7 317 394
2007
sterling
– financial liabilities 7 1 40 03 142 145
– preference shares 60  05 – 05
us dollar 7 0 28 66 36 102
euro – – – 126 126
other 81 03 02 17 19
7 6 321 397
 preference shares have no fixed repayment date
the sterling and us dollar fixed rate financial liabilities take into account interest rate swaps
floating rate financial liabilities bear interest at rates based on relevant national base rate equivalents which can fluctuate on a daily basis
the other financial instruments of the group that are not included in the above tables are noninterest bearing and are therefore not subject
to interest risk
interest rate risk
the group’s exposure to the risk of changes in market interest rates relate primarily to the group’s us dollar debt obligations
foreign currency risk
as a result of the significant investment operations in the united states of america and europe the group’s balance sheet can be affected
significantly by movements in the us dollar£ sterling and euro£ sterling exchange rates
credit risk
the group trades only with recognised creditworthy third parties it is the group’s policy that all customers who wish to trade on credit
terms are subject to credit verification procedures in addition receivable balances are monitored on an ongoing basis with the result that 
the group’s exposure to bad debts is not significant the maximum exposure is the carrying amount as disclosed in note 12 there are no
significant concentrations of credit risk within the group
with respect to credit risk arising from other financial assets of the group which comprise cash and cash equivalents and certain derivative
instruments the group’s exposure to credit risk has a maximum exposure equal to the carrying value of these instruments
8536renold ar 2008 acctstplayout 1  25608  1705  page 63 64 notes to the consolidated financial statements renold plc annual report and accounts 2008
notes to the consolidated financial statements
continued
26 financial instruments continued
f currency and interest rate profile of financial assets at 31 march 2008
2008 2007
cash at bank shortterm cash at bank shortterm
and in hand deposits t otal and in hand deposits t otal
currency £m £m £m £m £m £m
sterling 10 50 60 65 – 65
euro 19 21 40 33 51 84
other 52 03 55 54 – 54
81 74 155 152 51 203
cash balances and shortterm deposits are held with the group’s bankers these deposits are held largely in uk and germany and earn 
interest at bank deposit interest rates for periods of up to three months
g maturity of financial liabilities
the maturity profile of the contracted amount of the group’s financial liabilities was as follows
1 year or less 1 to 2 2 to 5 more than 5
or on demand years years years t otal
£m £m £m £m £m
2008
interest bearing loans and borrowings 87 305 09 07 408
leases 01 01 – – 02
t rade payables 232 – – – 232
preference shares – – – 05 05
320 306 09 12 647
the group has contracted forward contracts consisting of euro forward contracts £7 9 million and us dollar forward contracts £86 million 
due within one year 
1 year or less 1 to 2 2 to 5 more than 5
or on demand years years years t otal
£m £m £m £m £m
2007
interest bearing loans and borrowings 82 23 296 14 415
leases 01 01 01 – 03
t rade payables 203 – – – 203
preference shares – – – 05 05
286 24 297 19 626
 no fixed repayment date
h borrowing facilities
the group has the following undrawn committed borrowing facilities available at the year end date in respect of which all conditions
precedent had been met at that date 
2008 2007
£m £m
expiring within one year or less or on demand 120 84
the facilities expiring in one year or less or on demand are primarily annual facilities subject to review at various dates during the year ending
31 march 2009
8536renold ar 2008 acctstplayout 1  25608  1705  page 64 notes to the consolidated financial statements 65 renold plc annual report and accounts 2008
26 financial instruments continued
i fair values
set out below is a comparison by category of the carrying amounts and fair values of the group’s financial instruments excluding derivatives
short term trade payables and short term trade receivables which are already carried at fair value 
carrying value fair value
2008 2007 2008 2007
£m £m £m £m
financial assets
cash 155 203 155 203
financial liabilities
bank overdraft 13 48 13 48
interest bearing loans and borrowings
floating rate borrowing 317 321 317 321
fixed rate borrowing 72 71 72 71
preference shares 05 05 05 05
the fair value of derivatives and borrowings has been calculated by discounting the expected future cash flows at prevailing interest rates
j capital management
the primary objective of the group’s capital management is to ensure that it maintains a satisfactory credit rating and capital ratios in order
to support its business and maximise shareholder value
the group manages its capital structure and makes adjustments to it in light of changes in economic conditions t o maintain or adjust the
capital structure the group may adjust the dividend payment to shareholders return capital to the shareholders or issue new shares no
changes were made in the objectives policies or processes during the years ended 31 march 2008 and 31 march 2007 
the group monitors capital using a gearing ratio which is net debt divided by total capital plus net debt
2008 2007
£m £m
net debt note 25 239 194
preference shares 05 05
equity 410 239
t otal capital 415 244
capital and net debt 654 438
gearing ratio 37 44
8536renold ar 2008 acctstplayout 1  25608  1705  page 65 66 notes to the consolidated financial statements renold plc annual report and accounts 2008
27 business combinations
on 16 june 2007  the group acquired an interest in the plant equipment inventory and existing workforce of the chain manufacturing
business of hangzhou shanshui industrial co limited “hzss” located in china
renold’s interest is represented by a 90 equity interest in renold hangzhou co limited “rhz” the vehicle used to acquire the respective
trade and business assets of hzss the contract establishing rhz contains both a put and call option allowing either party to enforce the 
right of renold to acquire the remaining 10 equity interest from hzss at a date 10 years after the acquisition or by mutual agreement at
any time between three and ten years from acquisition as a consequence of this arrangement the investment has been accounted for as 
a 100 subsidiary  the group has recognised the fair value of the related contingent consideration to acquire the remaining 10 interest in
rhz as a provision in the group’s balance sheet and as part of the purchase consideration
book and fair values of net assets at the date of acquisition were as follows
provisional fair 
value to the 
book value group
£m £m
property  plant and equipment 11 11
inventories 11 07
onerous contracts – 01
net assets 22 17
goodwill arising on acquisition 12
consideration 29
discharged by
cash £20 million paid £05 million deferred 25
costs associated with the acquisition settled in cash 04
t otal consideration 29
from the date of acquisition of 16 june 2007  hzss has generated a loss of £03 million
included in the £12 million of goodwill recognised above are certain intangible assets that cannot be individually separated and reliably
measured from the acquiree due to their nature these items include the expected synergies expected to arise from combining hzss within
the renold group and the acquisition of an assembled workforce
if hzss had been consolidated from the start of the year  the effect on group revenue and profit before tax would have been immaterial
the onerous contracts provision was fully utilised by the year end
28 post balance sheet event
in june 2008 renold continental limited committed to sell the freehold of an office building located in brussels for proceeds expected to be
approximately £15 million the anticipated profit on this disposal is estimated to be approximately £07 million 
notes to the consolidated financial statements
continued
8536renold ar 2008 acctstplayout 1  25608  1705  page 66 group five year financial review unaudited 67 renold plc annual report and accounts 2008
group five year financial review unaudited
prepared under prepared 
ifrs under 
uk gaap
2008 2007 2006 2005 2004
£m £m £m £m £m
group revenue 1726 1884 2251 197 0 1921
less discontinued operations – 291 701 538 –
revenue from continuing operations 1726 1593 1550 1432 1921
operating profit before exceptional items 
and goodwill amortisation under uk gaap – continuing 120 98 68 46 7 6
operating profit 122 39 54 04 86
profitloss before tax 93 14 18 18 47
t axation 31 06 15 15 –
62 08 03 03 47
discontinued operations
profitloss from discontinued operations 15 135 139 02 –
profitloss for the year 77 127 136 01 47
net assets employed
property  plant and equipment intangible software and investment property 426 362 384 647 47 0
working capital and other net assets 332 262 307 430 412
operating assets 758 624 691 107 7 882
assets of discontinued operations – –371 – –
liabilities of discontinued operations – – 281 – –
properties held for sale – 34 34 – –
goodwill 163 152 17 1 157 188
net debt 239 194 207 17 0 192
dividends – – – – 21
deferred and current taxation 84 155 17 0 146 128
provisions 44 52 04 117 12
net assets excluding pension obligations 722 719 945 1093 97 3
pension obligations 312 480 539 532 394
t otal net assets 410 239 406 561 57 9
other data and ratios
operating return on average operating assets  174 149 7 7 47 86
operating profit on turnover  1 70 62 44 32 40
capital expenditure £m 1 82 58 66 7 6 7 2
basic earningsloss per share p 110 183 196 01 68
dividends per ordinary share p – –– 45 45
employees at year end continuing 2536 2041 2008 2015 2656
1 based on operating profit before exceptional items and goodwill amortisation under uk gaap
figures presented for 2004 under uk gaap include pension liabilities and associated deferred tax assets assessed in accordance with frs 17
“retirement benefits”  
had ifrs been adopted in 2004 the main adjustments to the uk gaap figures as presented above would have been in respect of pension
obligations the revaluation of freehold properties and nonamortisation of goodwill
8536renold ar 2008 acctstplayout 1  25608  1705  page 67 68 report of the independent auditors renold plc annual report and accounts 2008
report of the independent auditors
t o the members of renold plc
we have audited the company financial statements of renold plc for the year ended 31 march 2008 which comprise the company balance
sheet the company statement of t otal recognised gains and losses and the related notes i to xi these company financial statements
have been prepared under the accounting policies set out therein we have also audited the information in the directors’ remuneration
report that is described as having been audited
we have reported separately on the group financial statements of renold plc for the year ended 31 march 2008
this report is made solely to the company’s members as a body  in accordance with section 235 of the companies act 1985 our audit work
has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditors’
report and for no other purpose t o the fullest extent permitted by law we do not accept or assume responsibility to anyone other than the
company and the company’s members as a body  for our audit work for this report or for the opinions we have formed
respective responsibilities of directors and auditors
the directors’ responsibilities for preparing the annual report including the directors’ remuneration report and the company financial
statements in accordance with applicable united kingdom law and accounting standards united kingdom generally accepted
accounting practice are set out in the statement of directors’ responsibilities
our responsibility is to audit the company financial statements and the part of the directors’ remuneration report to be audited in
accordance with relevant legal and regulatory requirements and international standards on auditing uk and ireland 
we report to you our opinion as to whether the company financial statements give a true and fair view and whether the company
financial statements and the part of the directors’ remuneration report to be audited have been properly prepared in accordance with 
the companies act 1985 we also report to you whether in our opinion the information given in the directors’ report is consistent with 
the company financial statements the information given in the directors’ report includes that specific information presented in the
chairman’s statement the chief executive’s review and financial review that is cross referred from the group results section of the
directors’ report
in addition we report to you if in our opinion the company has not kept proper accounting records if we have not received all the
information and explanations we require for our audit or if information specified by law regarding directors’ remuneration and other
transactions is not disclosed
we read other information contained in the annual report and consider whether it is consistent with the audited company financial
statements the other information comprises only the directors’ report the unaudited part of the directors’ remuneration report the
chairman’s statement the chief executive’s review the financial review and the corporate governance statement we consider the
implications for our report if we become aware of any apparent misstatements or material inconsistencies with the company financial
statements our responsibilities do not extend to any other information
basis of audit opinion
we conducted our audit in accordance with international standards on auditing uk and ireland issued by the auditing practices board
an audit includes examination on a test basis of evidence relevant to the amounts and disclosures in the company financial statements
and the part of the directors’ remuneration report to be audited it also includes an assessment of the significant estimates and
judgements made by the directors in the preparation of the company financial statements and of whether the accounting policies are
appropriate to the company’s circumstances consistently applied and adequately disclosed
we planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to
provide us with sufficient evidence to give reasonable assurance that the company financial statements and the part of the directors’
remuneration report to be audited are free from material misstatement whether caused by fraud or other irregularity or error  in forming
our opinion we also evaluated the overall adequacy of the presentation of information in the company financial statements and the part
of the directors’ remuneration report to be audited
opinion
in our opinion
• the company financial statements give a true and fair view in accordance with united kingdom generally accepted accounting
practice of the state of the company’s affairs as at 31 march 2008 
• the company financial statements and the part of the directors’ remuneration report to be audited have been properly prepared 
in accordance with the companies act 1985 and
• the information given in the directors’ report is consistent with the company financial statements
ernst  y oung llp
registered auditor
manchester
june 2008
8536renold ar 2008 acctstplayout 1  25608  1705  page 68 accounting policies 69 renold plc annual report and accounts 2008
a summary of the principal company accounting policies is set out below these have been applied on a consistent basis unless otherwise
indicated
as permitted by section 230 of the companies act 1985 the company has not presented its own profit and loss account
basis of accounting – the accounts have been prepared in compliance with the companies act 1985 and in accordance with uk generally
accepted accounting principles uk gaap they have been prepared under the historical cost convention as modified to include fixed asset
investments at net asset value
foreign currencies – foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the date
of the transaction foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year
end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement
financial instruments and risk management – the accounting policies of the company in respect of financial instruments are consistent 
with those of the group and are detailed in the consolidated financial statements in accordance with paragraph 3c of frs 25 the company
is exempt from the disclosure requirements of paragraphs 51 to 95 of frs 25 the company’s financial instruments are consolidated with
those of the group and are incorporated into the disclosures in note 26
t angible fixed assets – t angible fixed assets represented by properties and equipment are stated at cost being purchase cost plus any
incidental costs of acquisition less accumulated depreciation the book values of certain assets which were the subject of past revaluations
have been retained as permitted by the transitional arrangements of frs 15 ‘t angible fixed assets’  depreciation is calculated by reference 
to original cost at fixed percentages assuming effective useful lives as follows
• leasehold properties – the period of the lease
• equipment and fixtures – 5 to 10 years
• motor vehicles – 25 per annum for 3 years leaving 25 residual value
where appropriate adjustments are made to the remaining effective useful lives of assets to reflect changes in circumstances to those
envisaged when the asset was brought into use
leases – annual rentals in respect of operating leases are charged against the profit of the year on a straight line basis over the lease term 
investments – shares in subsidiary companies are stated at their net asset value at the end of the year  this basis has been adopted because 
it is considered that it more fairly represents the value of the investment to renold plc
derivative financial instruments – the company uses derivative financial instruments to hedge the group’s exposure to foreign exchange
and interest rate risks arising from operating and financing activities in accordance with its treasury policy  it does not hold or use derivative
financial instruments for trading or speculative purposes
deferred tax – deferred tax is recognised on all timing differences that have originated but not reversed at the balance sheet date where
transactions or events that result in an obligation to pay more or a right to pay less tax in the future have occurred at the balance sheet date
with the following exceptions
• provision is not made for tax that would arise on the remittance of retained earnings of overseas subsidiaries unless the dividends have
been accrued as receivable at the balance sheet date
• deferred tax assets are recognised only to the extent that based on all available evidence it is considered more likely than not that there
will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted
deferred tax is measured on a nondiscounted basis at the tax rates that are expected to apply in the periods in which the timing differences
are expected to reverse based on tax rates and laws enacted or substantively enacted by the balance sheet date
pension costs – employees of the company participate in the pension plans operated by the renold plc group in the uk these include
pension plans of the defined benefit and defined contribution types however  the contributions paid by the company are accounted for 
as defined contribution plans in all cases this is because the company is unable to identify its share of the underlying assets and liabilities 
in the respective plans as required by frs 17 ‘retirement benefits’ therefore contributions paid to the respective pension plans are charged
to the profit and loss account as incurred disclosures associated with the renold group defined benefit plans are provided in the group
financial statements
accounting policies
8536renold ar 2008 acctstplayout 1  25608  1705  page 69 70 accounting policies renold plc annual report and accounts 2008
accounting policies
continued
sharebased compensation – the company operates equitysettled sharebased compensation plans as detailed in the group financial
statements the fair value of company employee services received in exchange for the grant of the options is recognised as an expense in the
income statement with the corresponding amount being recognised in equity  the total amount to be expensed over the vesting period is
determined by reference to the fair value of the options granted excluding the impact of any nonmarket vesting conditions using a black
scholes pricing model the model is adjusted as necessary for marketbased vesting conditions 
nonmarket vesting conditions are included in assumptions about the number of options that are expected to become exercisable at each
balance sheet date an update is made of the estimates of the number of options that are expected to become exercisable the impact of the
revision of original estimates if any  is recognised in the income statement and a corresponding adjustment made to equity over the
remaining vesting period the model is adjusted as necessary for marketbased vesting conditions
as permitted under the transitional provisions of frs 20 the company has applied the standard only to equitysettled awards granted after 
7 november 2002 and which vested on or after 1 january 2005
dividends – final dividend distributions to the company’s shareholders are recognised as a liability in the financial statements in the period 
in which the dividends are approved by the company’s shareholders while interim dividend distributions are recognised in the period in
which the dividends are declared and paid dividends receivable from subsidiary undertakings are similarly recognised on this basis
cash flow statement – as permitted by frs 1 ‘cash flow statements revised 1996’ the financial statements do not contain a cash flow
statement as the financial statements of the group which are publicly available contain a cash flow statement
related party transactions – the company has taken advantage of the exemption not to disclose related party transactions with other
members of the group under frs 8 ‘related party disclosures’ because the parent’s financial statements are presented with its consolidated
financial statements and because these transactions are fully eliminated on consolidation
accounting policy on derivatives – financial assets and financial liabilities are disclosed in the group accounts
8536renold ar 2008 acctstplayout 1  25608  1705  page 70 company balance sheet 71 renold plc annual report and accounts 2008
2008 2007
note £m £m
fixed assets
t angible assets i 03 02
investments in subsidiary undertakings ii 547 443
550 445
current assets
debtors iii 29 23
cash and shortterm deposits 199 118
228 141
creditors – amounts falling due within one year
other creditors iv 40 25
bank borrowings v 30 28
net current assets 158 88
t otal assets less current liabilities 708 533
creditors – amounts falling due after more than one year
bank borrowings v 178 158
preference shares v 05 05
derivative financial instruments vi 09 –
net assets 516 37 0
capital and reserves 
called up share capital viii 175 17 4
share premium account ix 63 61
profit and loss account ix 285 135
other reserves ix 07 –
shareholders’ funds 516 37 0
approved by the board on 24 june 2008 and signed on its behalf by
matthew peacock bob davies
chairman director
company balance sheet 
as at 31 march 2008
8536renold ar 2008 acctstplayout 1  25608  1705  page 71 72 company statement of total recognised gains and losses renold plc annual report and accounts 2008
company statement of total recognised gains and losses
for the year ended 31 march 2008
2008 2007
£m £m
profitloss for the year 150 17 0
net gainslosses recognised directly in equity
recycling of losses on cash flow hedges to the income statement 02 –
net losses on cash flow hedges taken to equity 09 –
t otal expense recognised directly in equity 07 –
t otal recognised gains and losses for the year 143 17 0
attributable to
equity shareholders of the company 143 17 0
8536renold ar 2008 acctstplayout 1  25608  1705  page 72 notes to the company financial statements 73 renold plc annual report and accounts 2008
i t angible assets
properties equipment t otal
£m £m £m
cost
at beginning of year 01 09 10
additions at cost 01 01 02
at end of year 02 10 12
depreciation
at beginning of year –08 08
depreciation for the year 01 – 01
at end of year 01 08 09
net book value at end of year 01 02 03
net book value at beginning of year 01 01 02
ii investments in subsidiary undertakings
shares advances t otal
£m £m £m
subsidiary companies
cost or valuation
at beginning of year 68 37 5 443
repayment of advances –54 54
disposals 01 – 01
reversal of impairment 159 – 159
at end of year 226 321 547
the principal subsidiary companies of renold plc at 31 march 2008 are set out on page 78
iii debtors
2008 2007
£m £m
amounts owed by group undertakings 21 14
deferred tax asset 02 03
other debtors 04 04
prepayments and accrued income 02 02
29 23
the analysis of the deferred tax asset is as follows
2008 2007
£m £m
all amounts falling due after more than one year 
decelerated capital allowances 01 01
other temporary differences 01 02
02 03
iv other creditors
2008 2007
£m £m
amounts falling due within one year
t rade creditors 09 07
amounts owed by group undertakings 02 –
other taxation and social security 03 01
other creditors 22 13
accruals 04 04
40 25
notes to the company financial statements
8536renold ar 2008 acctstplayout 1  25608  1705  page 73 74 notes to the company financial statements renold plc annual report and accounts 2008
v borrowings
2008 2007
£m £m
amounts falling due within one year
bank overdrafts 12 09
bank loans 18 19
30 28
amounts falling due after one year
bank loans 178 158
repayable
in more than one year but not more than two years 178 19
in more than two years but not more than five years – 139
178 158
summary of total borrowings
bank overdrafts 12 09
t otal bank loans 196 17 7
preference shares 05 05
t otal borrowings 213 191
bank borrowings are secured by fixed and floating charges over the assets of uk subsidiaries
all payments of dividends on the 6 cumulative preference shares have been paid on the due dates the preference shares have the 
following rights
i a fixed cumulative preferential dividend at the rate of 6 per annum payable half yearly on 1 january and 1 july in each year
ii they rank both with regard to dividend including any arrears to the commencement of a winding up and return of capital in priority 
to all other stock or shares of the company but with no further right to participate in profits or assets
iii there is no right to attend or vote either in person or by proxy  at any general meeting of the company or to have notice of any such
meeting unless the dividend on the preference stock is in arrears for six calendar months
iv there is no redemption entitlement 
vi derivative financial instrument
2008 2007
£m £m
forward foreign currency contracts – cash flow hedge 09 –
the cash flow hedges of the expected future transactions in euro’s and us dollar’s were assessed to be highly effective a net unrealised loss
of £05 million in respect of euro contracts and a loss of £04 million in respect of us dollar contracts was included in equity as at 31 march 2008 
a loss of £02 million was transferred to operating costs in the income statement in the period no deferred tax asset is recognised 
the group has contracted forward contracts consisting of euro forward contracts £7 9m and us dollar forward contracts £86m due within 
one year 
vii pensions
employees of renold plc include members of the principal uk defined benefit schemes however  the contributions paid by the company are
accounted for as a defined contribution scheme as the company is unable to identify its share of the underlying assets and liabilities in the
respective schemes as a consequence the deficit in the uk defined benefit schemes is only recognised as a liability in the group balance 
sheet no contributions are outstanding at the year end
notes to the company financial statements
continued
8536renold ar 2008 acctstplayout 1  25608  1705  page 74 notes to the company financial statements 75 renold plc annual report and accounts 2008
viii called up share capital
authorised issued
nominal value
2008 2007 2008 2007
£m £m £m £m
ordinary shares of 25p each 231 231 175 17 4
6 cumulative preference stock 06 06 05 05
total 237 237 180 17 9
at 31 march 2008 the issued ordinary share capital comprised 70022194 2007 – 69659807 ordinary shares of 25p each during the year
the company issued 362387 2007 – 230587 ordinary shares of 25p each for a cash consideration of £246570 2007 – £138192 by the exercise
of options under the executive and the savings related share option schemes
details of the preference shares are set out in note v
share options have been granted under the executive share option schemes and the savings related share option schemes at 31 march 2008
unexercised options for ordinary shares amounted to 5224805 2007 – 3698762 made up as follows
option price number number
pence of shares of shares
per share 2008 2007
date normally exercisable
executive share option schemes
within seven years from
18 july 2000 1995 scheme 24267 – 19042
17 july 2001 1995 scheme 23733 85000 140000
16 july 2002 1995 scheme 137 83 80000 150000
19 july 2003 1995 scheme 11850 50000 97 500
22 december 2003 1995 scheme 9450 – 10000
28 november 2004 1995 scheme 67 34 127000 202000
27 november 2005 1995 scheme 5850 109000 213000
28 july 2007 1995 scheme 8084 50000 50000
27 november 2007 1995 scheme 8350 125000 230000
11 march 2008 1995 scheme 7650 125000 125000
2 september 2008 2004 scheme 8800 475000 475000
22 november 2008 2004 scheme 7430 105000 105000
26 july 2009 2004 scheme 6160 515000 535000
30 november 2009 2004 scheme 10010 120000 120000
2 january 2010 2004 scheme 11420 360000 360000
27 november 2010 2004 scheme 9255 660000 –
31 march 2011 2004 scheme 7590 1576690 –
4562690 2831542
savings related share option schemes
within six months from
1 february 2008 1995 scheme 5508 38164 141204
1 march 2009 2004 scheme 5430 623951 726016
662115 867 220
further details of sharebased payment schemes operated by the company are provided in the directors’ remuneration report and note 21 
of the consolidated financial statements
8536renold ar 2008 acctstplayout 1  25608  1705  page 75 76 notes to the company financial statements renold plc annual report and accounts 2008
ix reserves
profit and share other t otal 
loss account premium reserves reserves
£m £m £m £m
at beginning of year 135 61 – 196
profit for the year 150 – – 150
net losses on cashflow hedges taken to equity – – 09 09
recycling of losses on cashflow hedges to the income statement – – 02 02
employee share option schemes – value of employee services – 01 – 01
share premium –01 –01
at end of year 285 63 07 341
as permitted by section 230 of the companies act 1985 no profit and loss account is presented in these financial statements the company’s
profit for the financial year was £145 million 2007 – loss £17 0 million
t otal fees payable by the company to ernst  y oung llp for work in respect of the audit of the company were £31000 2007 – £27000 
fees paid to the company auditors for non audit services to the company are not disclosed in these accounts because the company’s
consolidated financial statements are required to disclose such fees on a consolidated basis
x operating lease obligations
at the end of the year there were annual commitments under noncancellable operating leases in relation to a property as follows 
2008 2007
£m £m
leases expiring
– within one year 199 199
– between two and five years 199 199
– over five years 199 199
597 597
xi contingent liabilities
the company has guaranteed borrowings by subsidiary undertakings of £148million 2007 – £135 million performance guarantees given to
third parties in respect of group companies were £34 million 2007 – £30 million
notes to the company financial statements
continued
8536renold ar 2008 acctstplayout 1  25608  1705  page 76 corporate details 77 renold plc annual report and accounts 2008
corporate calendar
annual general meeting 30 july 2008
interim management statement first between 11 june 2008 – 17 august 2008
half year end 200809 30 september 2008
announcement of half year 200809 results november 2008
13
interim management statement second between 11 december 2008 – 15 february 2009
y ear end 200809 31 march 2009
announcement of annual results 200809 june 2009
payment of preference dividends 1 july 2008 and 1 january 2009
company details
registered office
renold house
styal road
wythenshawe
manchester m22 5wl
registered no 249688
t elephone 44 0161 498 4500
fax 44 0161 437 7782
email enquiryrenoldcom
website wwwrenoldcom
company secretary
lindsay beardsell
auditors
ernst  y oung llp  manchester 
broker and financial adviser
kaupthing singer  friedlander capital markets limited
financial pr consultants
college hill associates limited
registrar
capita registrars
northern house
woodsome park
fenay bridge
huddersfield hd8 0la
t elephone 0870 162 3131
email shareholder servicescapitaregistrarscom 
website wwwcapitaregistrarscom 
registrar’s share portal wwwcapitashareportalcom
corporate details
13 please note that following changes in legislation a copy of the interim results will no longer be sent to shareholders but will be available on the company’s website 
8536renold ar 2008 acctstplayout 1  25608  1705  page 77 78 principal subsidiary companies renold plc annual report and accounts 2008
united kingdom
renold power t ransmission limited
europe other than the united kingdom
austria renold gmbh 
belgium renold continental limited incorporated in the united kingdom
denmark renold as
france brampton renold sa
renold saf sas
germany renold gmbh
holland renold continental limited incorporated in the united kingdom
poland renold polska sp z oo
russia renold russia obshchestvo s ogranichennoj otvetstvennost u
sweden renold t ransmission ab
switzerland renold switzerland gmbh
north america
canada renold canada limited
usa renold inc
jeffrey chain lp
other countries
australia renold australia proprietary limited
china renold t ransmission shanghai company limited
renold t echnologies shanghai company limited
renold hangzhou co ltd
malaysia renold malaysia sdn bhd
new zealand renold new zealand limited
singapore renold t ransmission limited incorporated in the united kingdom
south africa renold crofts pty limited
the subsidiary companies listed above are those which in our opinion principally contributed to the results and assets of the group
companies of minor importance are omitted by virtue of section 231 and schedule 5 of the companies act 1985
all of our companies are direct or indirect subsidiaries of renold plc a company incorporated in england and wales which ultimately holds 
a 100 interest in the equity shares and voting rights renold power t ransmission limited and renold continental limited are registered 
in england and wales our overseas companies are incorporated in the countries in which they operate except where otherwise stated 
principal subsidiary companies
as at 31 march 2008
8536renold ar 2008 acctstplayout 1  25608  1705  page 78 renold plc annual report and accounts 2008
notes 
8536renold ar 2008 acctstplayout 1  25608  1705  page 79 renold plc annual report and accounts 2008
notes 
8536renold ar 2008 acctstplayout 1  25608  1705  page 80 the paper used in this report is sourced from well managed
and sustainable forests and is fsc certified 
designed and produced by the college 44 020 7457 2030
introduction renold plc annual report and accounts 2008
our group our directors corporate
governance
the financial
statements
summary and contents
01 financial highlights
02 at a glance
04 chairman’s statement
05 chief executive’s review
• renold today… and tomorrow
11 financial review
77 corporate details
78 principal subsidiary companies
15 board of directors
16 the directors’ report
21 directors’ remuneration report
26 statement of directors’
responsibilities
27 corporate governance the group financial statements
31 report of the independent auditors
32 accounting policies 
38 consolidated income statement
39 consolidated balance sheet
40 consolidated cash flow statement
41 consolidated statement of 
recognised income and expense
42 notes to the consolidated 
financial statements
67 group five year financial review
the company financial statements
68 report of the independent auditors
69 accounting policies
71 company balance sheet
72 company statement of total
recognised gains and losses
73 notes to the company 
financial statements
this past y ear has been 
a period of geographical
expansion and manufacturing
c ost r eduction w e now ha v e 
a solid pla tf orm to build on
as a business  r enold is well
positioned f ocused and 
set f or gr owth toda y 
and tomorrow 
8536renold ar 2008 coverrevlayout 1  25608  1706  page 2 renold plc
renold house
styal road
wythenshawe
manchester m22 5wl
telephone 44 0161 498 4500
fax 44 0161 437 7782
annual report and 
accounts 2008
wwwrenoldcom
delivering
performance
renold plc annual report and accounts 2008
8536renold ar 2008 coverrevlayout 1  25608  1706  page 1


Summary:
 04 chairman’ s statement renold plc annual report and accounts 2008
looking forward we will continue to focus on cost reduction 
and on extending geographically  thus far  the emphasis has been 
on moving the appropriate manufacturing capacity to lowcost
countries – a strategy which will continue to yield growth in our core
developed market territories in addition now that we are physically
present in these lowcost markets we are in an excellent position to
expand our highly regarded product range into them we estimate
that an annual industrial chain market of £400 million exists in new
territories where we have a current market share of less than 1 the
expansion to new geographies and product gaps will continue to be
pursued via selective infill acquisitions
t o this effect it was announced on 9 june that renold is in
discussions to acquire a 75 interest in the industrial chain business
of lg balakrishnan  bros ltd ‘lgb’ a public company listed on 
the stock exchange in india this business is the market leader for 
the production and distribution of industrial chains in india as well 
as having established exports this will enable renold to promote 
its existing product range into india’s rapidly growing market place
take account of existing export markets as well as exploit new
product market and export opportunities
y our board
barbara beckett will retire from the board at the agm in july  i would
like to thank barbara for her contribution over the last three and a
half years particularly in her role as chairman of the remuneration
committee i would like to welcome john allkins who joined the
board in april 2008 as a nonexecutive director and as chairman 
of the audit committee john is also a nonexecutive director of intec
t elecom systems and was previously group finance director of my
t ravel group plc besides financial skills he has strong international
experience which will be of benefit in the delivery of the group’s
current strategy 
outlook
we enter our next year with a strong sense of purpose but also 
with some caution regarding the outlook for the global economy 
notwithstanding that we operate in diverse geographies and sectors
which are somewhat uncorrelated with each other  we plan to pursue
actively  the considerable opportunities available to us in the rapidly
growing but fragmented emerging markets however  we will maintain
a particularly strong focus this year on cash management and a risk
aversion with our balance sheet as we do this as a consequence the
board has decided to recommend that no dividend be paid but it 
will consider future dividend policy in the light of results from the
business going forward 
additionally  it will remain important in the current year to continue 
to recover  through price increases and improved efficiency  the
inflation we experience in some of our input costs predominantly 
in steel freight and energy  
our order book at the end of the first quarter of the new financial
year is particularly strong and the company is well positioned in its
geographies and markets from this solid starting point i have every
confidence in our ability to perform over the coming year under the
strong leadership of bob davies and his executive team 
matthew peacock
chairman
overview
in this my second year as chairman of your board i am again pleased 
to report that renold has delivered a strong set of results revenue
growth of 8 and a strong increase in operating profit of 22 before
tax and exceptionals have generated basic earnings per share of 110p
compared to a loss per share of 183p a year ago within the strong
allround performance set out in this report the continued delivery 
of the profit and cash enhancement programme p ace plan
announced in march 2007 deserves particular comment at the
period end 46 of our direct labour was in low cost countries
compared to the original p ace target of 40 by march 2009 
this has grown from only 3 two years ago
strategy
we have strengthened the business over the last year  primarily 
via delivering p ace according to plan cost savings cash generation
and capital expenditure targets have been achieved risk reduction
actions on exchange rate exposure and energy prices were concluded
progress was made on tax efficiency  pension funding and unlocking
freehold property value perhaps most significantly  the integration of 
our june 2007 acquisition of chinese chain manufacturer hangzhou
shanshui was successful and capacity has been doubled from 
preacquisition levels at a very attractive capital cost 
chairman’ s statement
matthew peacock
chairman
w e have a strong platform in place
for our next phase of growth
8536renold ar 2008 frttplayout 1  25608  1704  page 4