Renold pushes ahead in challenging market

INDUSTRIAL chains supplier Renold continued to push ahead in the first quarter of the year despite ongoing challenging conditions in many of its end markets.

Updating the markets ahead of its Annual General Meeting later today, the Manchester-based group said it made adjusted operating profit and margin gains in the year to March, despite the “headwinds and volatility” in the end markets of both divisions.

Underlying sales for the group as a whole were down 4.1% or 1.1%, excluding the major non-recurring Swiss project win in the prior year.

The chain division delivered a growth in underlying sales in the first quarter of 1.0%, which excludes the impact of the Swiss project.

Renold said the rest of Europe, the Americas and Australasia all contributed to the modest growth.

It said management continues to implement measures laid out in the company’s strategic plan, which are expected to drive future sales growth including, expand the group’s footprint in high growth territories.

The group said: “As a result, the outlook for full year adjusted operating profit remains in line with the board’s expectations.”

Robert Purcell, chief executive of Renold, said: “We continue to demonstrate the robustness of our business model driven by our STEP 2020 Strategic Plan. Further margin gains have been delivered in the first quarter despite ongoing challenging conditions in many of our end markets. We remain well placed to take advantage of further self-help initiatives and opportunities to grow the business.”