Renold FY pre-tax profit slumps, no divi

14th Jul 2009 08:04

Industrial chains maker Renold revealed a sharp drop in full year pre-tax profit as economic conditions in the second half of its financial year deteriorated. "These challenges necessitated significant cost cuts and a rapid response from management which has been done," Renold said in a company statement.The group, whose chains are used in the transportation, energy, steel, manufacturing and mining industries, said pre-tax profit on continuing operations dropped to £2.1m in the year ended 31 March 2009 from £6.2m previously. Revenue for the year increased to £194.7m from £172.6m. Renold added that the significant downturn in sales last year has continued into this financial year with the first quarter showing a 25% year on year decrease. "We have entered our next financial year with caution regarding the outlook for the global economy, notwithstanding that we operate in many diverse geographies and sectors which are somewhat uncorrelated with each other," it said.The board is not recommending a dividend payment.