CEO says job cuts helped chain specialist hold stable

Manchester-based industrial chain supplier Renold says its dip in profits and underlying revenue have been mitigated by efficiency savings – including the loss of 30 jobs in December.

The listed company company announced the closure of its torque transmission site in Halifax, West Yorkshire and also offloaded its Australian site for £7.5m at the back end of 2016.

Underlying revenue is down slightly from £184.7m to £183.4m while pre-tax profits fell from £7.4m to £6.7m in the year to March 31.

The revenue was broadly stable as its Tooth Chain acquisition largely off-set declines in torque transmission and chain operations outside Europe.

Chief executive Robert Purcell said: “We have delivered a robust performance in challenging markets.

“The impact of the market headwinds on revenue and operating profit would have been far greater had it not been for the actions delivered to increase operating efficiencies.

“Markets stabilised during the year and there was a return to revenue growth in the second half of the year along with an increase in order intake.

“Although there are some early indications of improvement, macro-economic uncertainty remains and, in turbulent times, our STEP 2020 Strategic Plan (the efficiency programme) remains relevant and critical to the long-term delivery of value to all of our stakeholders.

“Actions already delivered as part of the plan will combine with on-going programmes to further improve the efficiency and effectiveness of our operations.

“The group is positioned for organic growth and we continue to believe that mid-teens operating margins, and sustainable gains in adjusted earnings per share, can be delivered when volumes improve through organic growth and targeted acquisitions.”