Renold sees rise in profit but fall in cash

15th Nov 2011 16:03

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. "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