Renold predicts higher profits

INDUSTRIAL chain maker Renold has said that sales and orders grew throughout the first half of its financial year to the end of September.

The Wythenshawe-based firm said that its order intake had grown at a faster rate than its sales for five of the last six months and is 27% higher than in the same period last year. It said that sales on a constant currency bases were up 18%.

The company also said this morning that despite the improved sales it was continuing to review its cost base and had begun negotiations with employees in France which could see it close the manufacturing arm of a gears facility at Seclin, near Lille in northern France.

It also said that the implementation of an enterprise resource planning system was continuing and should eventually lead to improved costs and working capital efficiency.

“The combination of increased sales and continued cost savings has therefore led to improved profitability ahead of the Board’s expectations for the first half,” the company said

“The group is optimistic of maintaining the current improving profit trend in the second half.”