Shares of Manchester industrial chain firm Renold plc rose about 9% on Wednesday after it published “resilient” and “robust” results for the half year ended September 30, 2020.
Revenue from continuing operations fell 17% to £81.5 million and profit before tax fell 20% to £2.8 million.
“Order intake at the start of the period reflected customer destocking, however, trends through the period end suggest a continued modest improvement, albeit at levels below the prior year in the near term, this was most evident in India, South East Asia and to a lesser extent parts of Europe,” said the company.
Renold CEO Robert Purcell said: “Whilst the market environment continues to be challenging, the strategic actions taken in recent years, augmented by the measures taken earlier this year in response to the Covid-19 pandemic, have resulted in a more resilient business that is better placed to overcome today’s challenges.
“Renold reacted quickly to the sharp decline in order intake arising from the pandemic and, as a result, delivered a robust operating margin and substantial reduction in net debt.
“I would like to thank all employees for their commitment and outstanding efforts in keeping our facilities open and serving our customers during this time.
“The tight focus on cost and cash management in the first half has created a platform from which we can manage through short-term disruption.
“We are focused on ensuring Renold can respond strongly as markets recover.”