Manchester industrial chain and power transmission firm Renold plc — which has agreed to a takeover offer from US private equity firm MPE Partners — reported a 1.5% increase in revenue to £245.1 million for the year to March 31, but statutory profit before tax fell 10% to £20.6 million.

Renold said volume demand during the early part of FY26 has been slightly below prior year levels and that it expects demand to remain subdued, at least through the remainder of the first half of the current financial year.

Renold said on June 13 it agreed to a £186.7 million takeover offer from MPE Bidco, a vehicle indirectly controlled by US private equity firm MPE Partners. The offer was worth 82p per Renold share in cash, a premium of 50% to the closing price per Renold ordinary share of 54.6p on May 19, 2025, the last business day prior to the commencement of the offer period on May 20.

On Wednesday, Renold said: “On 13 June 2025, MPE announced a firm intention to make an offer to acquire the entire issued share capital of Renold, at a price of 82 pence per share, which has been recommended by the board.

“As at 9 July 2025, the MPE Offer remains subject to a number of conditions, including approval by the company’s shareholders and consequently there can be no certainty that a transaction will complete. Should the MPE Offer be successful, the transaction is expected to complete during FY26.”

Renold CEO Robert Purcell said: “Our clear and effective strategy has delivered further progress and strong results in FY25, but we remain mindful of the additional challenges presented by the current economic backdrop.

“The group has a broad international footprint and highly differentiated product offering, and as such has been able, using supply chain flexibility and price rises, to mitigate a large part of the direct cost headwinds presented by current changes to tariff regimes.

“Overall, volume demand during the early part of FY26 has been slightly below prior year levels, with some customers deferring procurement decisions in response to the heightened level of uncertainty, affecting a number of our geographic and sector end-markets.

“During the first quarter, the impact of reduced group sales volumes was largely offset by pricing and we will take further pricing action to meet additional cost increases if necessary. We are also seeking to manage the effects of currency movements and particularly the weaker US dollar, which if the current exchange rate is maintained for the remainder of the financial year, would represent a translational headwind to earnings.

“We would expect greater customer outlook visibility to drive improved demand, but currently anticipate this to remain subdued, at least through the remainder of the first half of the current financial year. Against this backdrop, we are focussed on maximising our efficiency and ensuring we can respond effectively to changing conditions, in order to maintain our strategic momentum.”