Manchester industrial chain and power transmission firm Renold plc reported a small increase in profit for the latest six months as it continued to struggle with fluctuating exchange rates and soft end markets. 

The company’s sales dropped 1.5% to £123.4 million, but would have been up 0.6% at constant exchange rates. Adjusted operating profit rose 1.3% to £15.2 million.

Robert Purcell, Chief Executive of Renold, said: “Renold continue to deliver improving results in what have been variable and generally difficult markets. The Renold business with its diversity of customers, geography, markets and applications has shown its strength in a period of considerable economic upheaval. Our STEP2 Strategy is being consistently executed and is delivering good results.”

“In the first half we have made further progress with our inorganic growth strategy through the acquisition of Mac Chain, another excellent addition to the Group and one that enhances our market position in a number of sectors and geographies. Our strong cash generation means that we can accelerate the cadence of value enhancing bolt-on acquisitions.”

“Whilst we see no signs of the global economic conditions significantly improving in the second half, the resilience of the Group gives the Board confidence in delivering underlying full year results in line with market expectations.”

Analysts currently expect full year revenue of £252.5 million, on average, and operating profit of £30.4 million.