10th Nov 2021 12:25
(Alliance News) - Renold PLC on Wednesday said its markets recovered strongly in the first half of its financial year, bouncing back from the Covid-19 pandemic, with a big rise in new orders, though it warned on supply chain issues and raw material availability.
The Manchester-based company makes industrial chains and torque transmission products for use in manufacturing, transportation, energy, metals and mining.
Pretax profit more than doubled to GBP6.2 million in the six months that ended September 30 from GBP2.8 million a year before, as revenue rose 17% to GBP95.3 million from GBP81.5 million.
Order intake jumped by 49% from a year before to GBP113.0 million, rising 55% at constant currency rates. This resulted in an orderbook of GBP72.1 million, a record high for the Renold and up 55% from a year before.
However, Renold declared no interim dividend, unchanged from a year before, citing "economic headwinds", including supply chain delays, raw material shortages, and price inflation. Renold hasn't paid a dividend in at least eight years. It said it will keep its dividend policy under review, with a focus on profit margin and cash flow performance.
"The strong trading momentum experienced in the fourth quarter of the last financial year has continued into the first half, resulting in growth of both revenues and profitability," said Chief Executive Robert Purcell. "Despite the widely reported global supply chain and inflationary pressures that remain present, particularly with respect to materials, transport and energy costs, Renold continues to benefit from geographic, customer and market sector diversity."
Renold shares were up 6.8% at 33.10 pence in London at midday.
By Tom Waite; [email protected]
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