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.

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

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