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.
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.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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."
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
-
Christmas at Chatsworth: review of The Cavendish Hotel at Baslow
MoneyWeek Travel Matthew Partridge gets into the festive spirit at The Cavendish Hotel at Baslow and the Christmas market at Chatsworth
By Dr Matthew Partridge Published
-
Tycoon Truong My Lan on death row over world’s biggest bank fraud
Property tycoon Truong My Lan has been found guilty of a corruption scandal that dwarfs Malaysia’s 1MDB fraud and Sam Bankman-Fried’s crypto scam
By Jane Lewis Published