Renold sees customer demand returning

INDUSTRIAL chain maker Renold has said it is seeing the first signs of recovery after widespread destocking, and trading over the last three months has been increasingly stable.

In its interim management statement, the Wythenshawe-based company said trading since October 1 had been in line with expectations and that customer destocking, which had accounted for around half of its reduced sales, was coming to an end.
 
In November the company raised £26.9m after expenses through a share placing. It said these funds had been used to reduce bank debt through the repayment and cancellation of an £11m multicurrency term-loan with RBS/Fortis.

The remainder has been used to repay, but not cancel, borrowings under revolving and overdraft facilities.

It added: “This additional funding headroom has enabled the company to invest in operational improvements with short-term payback and the more robust balance sheet positions the company for expected industry consolidation opportunities.”