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(Alliance News) - Renold PLC on Wednesday reported a decline in profit in the first half of its current financial year due to "a more challenging economic backdrop".
In addition, the supplier of industrial chains said Ian Scapens intends to retire as non-executive director at the end of March next year, to pursue new career opportunities.
Meanwhile, Ian Griffiths - who has served as a non-executive director since 2010 - has also decided to retire for personal reasons, with immediate effect.
David Landless will succeed Griffiths as the senior independent director, Renold said, and Tim Cooper will replace Griffiths as chair of the Remuneration Committee, both with immediate effect.
The company said it will begin the process of recruiting a replacement for Scapens with the intention of ensuring an orderly handover period.
Turning back to interim results, Renold said its pretax profit declined by 2.8% to GBP3.5 million in the six months to the end of September from GBP3.6 million reported a year prior, whilst revenue remained flat at GBP98.2 million.
"A more challenging economic backdrop impacted on revenue and order intake in the first half of the year. Despite this, ongoing actions to improve the business have sustained profit and improved margins," said Chief Executive Robert Purcell.
He added: "Assuming no further deterioration in trading conditions, these measures will continue to deliver benefits in the second half and beyond, providing resilience through uncertain markets. As market conditions improve and we return to revenue growth, the operational platform being established will enable us to make further progress in growing margins and returns."
In light of the continuing investment in equipment and revenue expenditure to improve the performance of the business, the company said it has decided not to declare an interim dividend.
Renold shares were trading 2.5% lower in London on Wednesday at 20.48 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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