Member Article

Renold warns of revenue falls

Manchester-based industrial supply firm Renold has warned of falls in revenue ahead of its full year results, which will be released at the end of May.

The company, which is located in Wythenshawe, said challenging market conditions have persisted across the past 12 months, resulting in a 7% decrease in underlying revenue year-on-year.

For its results in the second half of the year ending 31st March 2013, Renold said revenues will have dropped by 4% in comparison with the first half.

The business added that the impact of revenue falls in the second half will be fully offset by action taken by management teams to reduce overheads.

As a result, adjusted operating profits in the second half will be in line with the first six months of the year, and full year adjusted operating profits will meet with market expectations.

Robert Purcell, chief executive of Renold, commented: “We are pleased with a good improvement in book to bill ratios in the second half versus the prior year.

“However, with trading conditions expected to remain challenging, we are developing plans to lower the Group’s breakeven point and further improve our commercial position, and I look forward to reporting in further detail at the full year results announcement in May.

“The business remains focussed on delivering sustainable cash generation which has been enhanced by the recent progress on UK and South African pension schemes.”

This was posted in Bdaily's Members' News section by Miranda Dobson .