29th May 2018 10:08
LONDON (Alliance News) - Renold PLC on Tuesday said it has returned to its first organic revenue growth "in a number of years" in its recently ended financial year though profitability struggled in its first half.
Shares in the engineering company were up 15% on Tuesday at a price of 26.50 pence each. A year ago, they were at 56.75p, following a steep price drop in March after a profit warning.
Renold's revenue rose to GBP191.6 million from GBP183.4 million for the 12 months to March 31, and, on underlying basis, it rose to the same figure from GBP184.6 million.
In its prior year, revenue also grew 11% but this was due to acquisitions, with underlying revenue falling 0.7%. Going back another year, Renold's revenue fell 8.9% year-on-year.
Statutory pretax profit came in at GBP1.4 million, compared to GBP6.7 million a year prior. On an adjusted basis, which among other things removes restructuring and financing costs, it fell slightly to GBP12.5 million from GBP12.8 million.
Renold said it continues to make "strong" progress on its 2020 strategic plan, and the investment required means it is not paying a dividend for its recently ended year.
During the period, it said, raw material prices rose "significantly" and the company was too slow to respond. Combined with factory disruption this hit first half profitability, but action taken meant this improved in the second six months.
Looking forward, Renold expects growth in its newly-begun financial year as macroeconomic conditions improve, and it believes its 2020 plan will create a "more robust, higher margin" business.
Related Shares:
Renold