Leaner Renold sees profits leap

CHAIN maker Renold said its closure of its Bredbury manufacturing site had played a key role in helping it to report much-improved financial results.

The Manchester-based group, which as well as industrial chains used in escalators and theme park rides, makes torque transmission products,  said pre-tax profits had surged four-fold to £4.4m as adjusted underlying revenues crept up from  £89.2m to £90.5m.

Chief executive Robert Purcell said: “We continue to deliver robust and sustainable improvements in operating profits and margins.

“Numerous self help projects remain to be exploited in future years and their benefits will contribute to further margin enhancement and revenue growth as we lay the foundations for the organic growth phase of our strategic plan to be entered at the end of the current financial year.”

Mr Purcell said the uptick in profitability was “primarily the result of the cost savings generated from the Bredbury site closure, but was also supported by leveraging higher value added products and by other group wide initiatives to reduce production costs and overheads.”

The company said project had already delivered annualised operating profit gains of approximately £3.2m with effect from the end of May 2014.