20th Jul 2016 07:26
LONDON (Alliance News) - Industrial chains and power transmission products supplier Renold PLC on Wednesday said it anticipates a better second half after good order intake in the first quarter, though sales continued to decline.
Renold said trading in the first quarter to the end of June met its expectations, with constant currency sales down 9.6% year-on-year. Renold said this was an improvement on the 11% decline in sales seen in the second half of its previous financial year.
Underlying order intake, however, grew 3.1% year-on-year, helped by good performances in its Chain and Torque Transmission businesses. Renold Chief Executive Robert Purcell said the strong growth in Torque Transmission, in particular, points to an improved outlook for Renold in the second half of its financial year.
The group said it will take time for the full implications of Brexit to become clear, but noted it only makes 8.0% of group sales in the UK.
"We continue to invest in growth related activities focussed on expanding our sales foot print and new product development. Multiple initiatives are also underway, focussed on efficiency gains and our cost base to improve further our operational gearing," Purcell added.
In a separate statement, Renold also said Finance Director Brian Tenner is to leave the company. He will remain at Renold until a successor is found, and the company said the search for his replacement is underway.
Shares in Renold were up 0.7% to 38.00 pence Wednesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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