Renold says order book continuing to improve slowly

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Renold PLC (LON:RNO), the industrial chains manufacturer, reported first-half pre-tax profits down 20% due to the effects of the coronavirus pandemic and said it has decided not to declare an interim dividend.

The group said its order book has started to pick up and continues to improve slowly, albeit that it is still below the previous year’s levels, mostly in India, South East Asia and some parts of Europe to a lesser extent.

Revenue declined 17% to £81.5mln, as was revealed last month, while margins fell to 7.1% from 7.9% as the Manchester-based group hailed improved efficiency and productivity from capital investments and operational improvements in recent years.

As outlined in the October trading update, strong cash flow had reduced net debt to £26.4m from £36.6m at the end of March.

There was no guidance for the full year but the board said the dividend policy “will remain under review as margin and cash flow performance continues to develop”.

The shares rose 2% to 11.16p on Wednesday morning, but are still down 35% since the start of the year.

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