Renold shares hit after update

Transmission products firm Renold saw its shares drop over nine per cent on Tuesday morning after it said growth had slowed in the second half.

The firm said full-year adjusted earnings had doubled on the previous year, in line with expectations.

It added that operating margins and profit improved further during the second half of the year (to the end of March) in both its torque transmission and chain divisions.

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However, investors took fright after the company said ongoing economic uncertainty in Europe had hit growth in the second half.

"[This] has resulted in sales volatility and...Swiss manufacturing output has been reduced by the strength of the Swiss franc," Renold said.

"This slowdown was more than offset by the group's Rest of World sales, which continued to grow and were above double digit levels in the Americas, India and South East Asia," it added.

"While European growth is likely to be moderated by the ongoing economic uncertainty, good sales growth is still expected to continue in both divisions in the rest of the world."