Advertisement

Renold retreats into full year loss

Engineering firm Renold booked a full year loss while revenue sagged in what the group described as disappointing results due 'inefficient business processes' and 'very challenging end markets'.

Engineering firm Renold booked a full year loss while revenue sagged in what the group described as disappointing results due 'inefficient business processes' and 'very challenging end markets'.

The group, which supplies industrial chains and related power transmission products, reported a pre-tax loss of £7.7m for the year ended March 31st 2013 compared to a profit of £7.6m a year earlier. Revenue for the year fell to £190.3m from £205.5m previously.

Advertisement - Article continues below

Non-Executive Chairman Mark Harper said: "These are disappointing, if unsurprising, results due as much to long-standing inefficient business processes within the group as they are to very challenging end markets."

As a result, Chief Executive Robert Purcell outlined a strategic review and a turnaround plan, which has identified significant excess capacity.

Renold added: "By removing excess capacity and instituting smarter working practices across the group, we can lower the breakeven point and hence achieve a sustainable performance improvement over the medium term without the need for substantial sales growth."

"With a differentiated product offering and market leading positions, Renold is a business with a viable long term future."

CJ

Advertisement
Advertisement

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

OBR: UK house prices could fall by 12% next year
House prices

OBR: UK house prices could fall by 12% next year

The Office for Budget Responsibility says UK house prices could fall by as much as 12% next year. John Stepek looks at how likely that is.
14 Jul 2020
Three ideas for Lloyds Bank's new boss
UK stockmarkets

Three ideas for Lloyds Bank's new boss

The Black Horse needs whipping into shape. A change at the top provides a great opportunity, says Matthew Lynn.
12 Jul 2020
We’re spending more than at any time since World War II – how will we pay it back?
UK Economy

We’re spending more than at any time since World War II – how will we pay it back?

With the UK spending vast sums on stimulus measures, this year’s budget deficit will be greater than at any time since World War II. The big question,…
14 Jul 2020