Renold, Manchester chain firm, doubles profit

Shares of Manchester industrial chain and power transmission firm Renold plc rose about 7% on Wednesday after it said its revenue rose 17% to £95.3 million and profit before tax rose 121% to £6.2 million in the six months to September 30.

Renold’s orderbook at September30 of £72.1 million is a record high for the group.

However, Renold said: “In light of the widely reported economic headwinds, including the impact on its supply chain, raw material availability, inflation and continuing investment in equipment and revenue expenditure to improve the performance of the business, the board has decided not to declare an interim dividend.

“The dividend policy will remain under review as margin and cash flow performance continues to develop.”

Renold CEO Robert Purcell said: The strong trading momentum experienced in the fourth quarter of the last financial year has continued into the first half, resulting in growth of both revenues and profitability.

“Despite the widely reported global supply chain and inflationary pressures that remain present, particularly with respect to materials, transport and energy costs, Renold continues to benefit from geographic, customer and market sector diversity.

“With a record order book at the period end, coupled with the strategic initiatives previously implemented, we approach the second half with confidence, but cognisant of the very volatile and inflationary world we operate in.”

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