22nd Oct 2013 08:24
LONDON (Alliance News) - Renold PLC Tuesday said it has began to close its Bredbury Chain Facility in the UK amid low sales figures in its first-half.
The international supplier of power transmission products, including chains and gearboxes, said it expects the closure to be complete by the first quarter of the next financial year and details will be included in the Group's interim results statement in November.
The company said its underlying revenues excluding the impact of foreign exchange movements fell by 2.3% in the six months ended September 30 compared to the previous year.
Renold said its chain division external revenue fell 1.0% and its torque transmission sales fell 6.4% during the period.
The company said that progress has been made towards improving its margins in order to offset sales reductions during the period and that its first-half underlying adjusted operating profit, not including pension charges, finance charges and administrative expenses included in operating costs, is expected to be substantially better than in the previous year.
"The closure of our Bredbury facility will significantly lower our breakeven point and will add to the cost reductions being delivered in other parts of the Group," Chief Executive Robert Purcell said in a statement.
Renold shares were up 9.3% to 44.25 pence, making it the highest allshare mover in early trading Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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