Recovery returns Renold to profit
INDUSTRIAL group Renold has reported a major turnaround in its fortunes as soaring demand in most territories and business sectors helped it return to profitability.
The listed company, one of the world’s leading manufacturers of chains, said it was optimistic the recovery would continue until its year end in March.
Renold, which has its global headquarters in Wythenshawe, south Manchester and has manufacturing operations in Bredbury and Milnrow, said revenue in the half year to September 30 had risen 17% to £92.9m.
Bottom line profits came in at £400,000, a major improvement on the £8.8m loss declared this time last year. Operating profits before exceptionals were £3.1m compared with a loss of £2.3m.
An upturn in demand for chains – the biggest part of the group – led the revival. the company said it had ended shortened working days at its factories and was now hiring a small number of staff in both Bredbury and Milnrow.
Chief executive Bob Davies told TheBusinessDesk.com: “The recession has year obvious affected us as customers destocked, meaning they were not buying as much from us. This has largely ended, hence the 30% increase in chain orders year on year.
“Customers are now passing increased demand on to us, rather than taking out of stock.”
Mr Davies said demand had returned in the US and Europe, while in India, China and Australasia orders had remained healthy. The majority of sectors, which the exception of construction are growing again he added.
Chairman Matthew Peacock said: ““The business is now enjoying the combined benefits of previous work to reduce the cost base and strong revenue growth in the first half.
“Order books are being replenished and the outlook for second half sales continues the positive trend.
“Profits have been generated consistently throughout the period and this will continue as further improvements are made to our cost base. The group is very well placed to take advantage of improving markets and gains in market share.”
