Renold stays in profit despite H1 sales falling 17%

Manchester industrial chain firm Renold plc said on Friday it remained profitable in the six months to September 30 despite sales revenue falling 17% on the prior year to £82 million.

In a trading update Renold said: “Renold delivered a resilient performance in the first half despite its markets being significantly impacted by the Covid-19 pandemic.

“The business remained profitable throughout the period and achieved a significant reduction in net debt of £10.2m to £26.4m (FY 2019/20: £36.6m), despite sales revenue down 17% on the prior year, at £82m.

“The group continued to benefit from a combination of improvement in the strategic cost base and the productivity gains made in recent years, together with tactical short term cost saving measures.

“These enabled the group to achieve a positive operating margin for the period.

“Reflecting the impact of global shutdowns and lower levels of demand across a number of the group’s markets, order intake in the period was down 21% year on year to £76m.

“However, trends through the period end suggest that order intake should continue to slowly improve, albeit at levels below the prior year in the near term. 

“Whilst considerable uncertainty remains, Renold benefits from significant geographic, customer and sector diversification.

“The group’s ongoing focus on cost control, operational efficiency, productivity, and cash management is helping to offset the subdued demand and should enable the group to make continued strategic progress in the second half.”