- By Region
Renold, the manufacturer of industrial chain and transmission products, said resurgent demand around the world boosted pre-tax profit almost tenfold in the first half of the year.
The Manchester-based business posted a profit before tax of £3.7m for the six months to 30 September 2011, up from £400,000 in the same period last year. Sales rose from £92.9m to £105.5m and operating profit doubled from £3.1m to £6.3m. For the full year 2010-11, it made a £1.3m pre-tax loss.
Its order book for the next quarter has recovered to pre-recession levels although absolute levels of underlying rolling 12 month sales remain around 15 per cent below.
Bob Davies, chief executive, said the company, which makes chains for everything from Chinese motorbikes to the escalators on the London Underground as well as gearboxes and couplings, said it experienced double digit sales growth in all regions. The Americas, Europe and Asia each account for about a third of sales.
However, he said cost cutting would continue as instability hit the euro area, possibly affecting revenue. It recently closed a factory in France and is centralising its European back office operations in Manchester. The aim is to save £3m in the full year.
Mr Davies said: “We sell in 105 countries and – equally important – manufacture in 13 different locations. We are positioned not only to be competitive on cost but to serve growing markets.”
Net debt has increased from £23.6m to £29m over the past year, with increased loans from RBS and Fortis, two of its banks, to finance growing sales.
Earnings per share increased from 0.1p to 1.3p and there was no interim dividend. The company is prioritising debt repayment and cash conservation.