Renold sees rise in profit but fall in cash

Industrial chain maker Renold saw a huge rise in pre-tax profit after revenue increased more than £12.5m.

Revenue rose from £92.9m to £105.5m leading to pre-tax profit of £3.7m (2010: £0.4m)

Chairman Matthew Peacock said: "Order books remain strong and the outlook for second half sales growth continues despite the well-publicised macro-economic uncertainty in many of the world's economies.

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"The group is taking proactive measures to accelerate planned cost reduction initiatives in order to protect this year's result should a downturn occur."

The firm recommended that no dividend be paid for the period as it continues to focus on cash generation and debt reduction.

Absolute levels of underlying rolling 12-month sales remain about 15% below the pre-recessionary levels.

Cash fell from £0.4m to £3.8m.

Shares lost 4.2% to 28.5p by 16:21.

NR