Manchester industrial chain and power transmission firm Renold plc said trading was in line with expectations for the first five months of its financial year, ahead of its annual general meeting on Tuesday.

It said revenue for the period was £102.3 million, slightly down from £104.7 million in the same period a year ago. Order intake for the period was £105.5 million, up from £92.6 million a year ago.

Renold separately announced the acquisition of the trade and net assets of MAC Chain Company Ltd (U.S.) and the entire issued share capital of MAC Chain Company Limited (Canada), for $31.4 million in cash.

“Global markets continue to be uncertain, with activity levels in both mainland Europe and China recovering more slowly than initially anticipated,” Renold said in a statement.

“However, material and labour inflation is now reducing and the Group retains a strong order book which remains high by historical standards.

“Good trading performance in the Period, coupled with the strong order book underpins management’s confidence in the outturn for the year.

“Trading and profitability for the first half is in line with the board’s expectations, whilst the full year will now also include six months contribution from the MAC Chain acquisition.”

With operations in the Pacific Northwest of the US, British Columbia, and Quebec, MAC Chain is a manufacturer and distributor of high quality conveyor chain (CVC) and ancillary products, with a significant presence in the forestry and broader industrial markets.

“The acquisition substantially increases the group’s access to the Western US and Canadian CVC markets, particularly forestry, which we have identified as a significant opportunity for the Group to expand into …” said Renold.

“When combined with Renold’s existing US and Canadian operational footprint, the acquisition presents opportunities for significant manufacturing synergies on integration into the enlarged group …

“The MAC Chain management team, which brings many years of industry and market knowledge, will transfer to the group following completion of the acquisition, and continue to lead the MAC Chain business, joining Renold’s North American management team …

“Following completion, the acquisition is expected to immediately enhance group adjusted earnings per share, as well as be accretive to the group’s operating margin.”