Manchester industrial chain and power transmission firm Renold plc delivered “record results’ as it said its revenue increased 26.6% to £247.1 million and profit before tax rose 39.5% to £17.3 million in the year to March 31, 2023 — but the firm will not pay shareholders a dividend.

Renold shares are up about 33% so far in 2023.

“The board fully recognises the importance of dividends as part of the overall value creation proposition for shareholders,” said Renold.

“However, the board has carefully reviewed its capital allocation priorities, and believes that both organic and inorganic investment opportunities that are available to the group will deliver higher levels of shareholder return over the medium term than the payment of dividends in the near term.

“The board will continue to review this approach over the coming periods. As such, the board is not recommending the payment of a dividend on the ordinary shares of the company for the year ended 31 March 2023.”

Renold CEO Robert Purcell said: “I am delighted with the group’s robust performance during the last financial year which delivered record results and exceeded market expectations, reflecting the benefits of the strategic programmes implemented in recent years.

“Throughout the reported period, the business performance has been on an improving trend and our order books continue to be healthy though order patterns have been inconsistent in the early part of the new financial year.

“We recognise that there are still considerable economic challenges in many parts of the world; supply chain issues, although reducing in number and severity, are still prevalent and inflation and prices remain high, for both energy and materials.

“However, we have entered the new financial year with good momentum and confidence in the excellent fundamentals of the Renold business, although macroeconomic trends add a note of caution.”