Renold on track for full year as half-year revenue rises
Chains manufacturer Renold said on Thursday that it was on track to deliver full-year results in line with the board's expectations, as it posted a jump in revenue.
In an update for the six months to 30 September, the group said revenue was up 4.5% compared to the same period a year ago, or 6.4% on an underlying basis. Order intake was 1.7% higher on an underlying basis, or 7.4% adjusted to exclude the large multi-year UK Couplings order from the previous year.
Meanwhile, orders were 3.4% ahead of revenue for the period.
Renold said its chains division was making good progress in recovering from the issues that affected its performance last year. The rate of raw material price increases has moderated in most geographies and the group has had success in passing these through to customers, resulting in margin recovery.
Output from its Einbeck facility in Germany has been stronger in the period and is supporting improvement in levels of customer service.
As expected, revenue for the Torque Transmission division reflected strong growth in Renold's US markets. However, this was partially offset by lower revenue in UK Couplings as a result of the phasing of the large multi-year contract.
Chief executive Robert Purcell said: "It is pleasing to see that we have made good progress in addressing the short-term issues encountered during the previous year. The strategic plan continues to improve the underlying business and the impact is starting to become visible in the trading results."
At 1355 BST, the shares were down 8% to 33.60p.