New Renold boss shows his faith after buying 1.5m shares

Robert Purcell, the newly-appointed boss of engineering group Renold, bought one and a half million shares in the company less three weeks after the firm revealed that it had swung into the red in its annual results.The firm, which supplies industrial chains and power transmission products, said that Purcell bought the stock on Friday for a price of 25.25p, spending a total of £378,750. The transaction lifted his holding to just under 3.25m shares, equal to a 1.47% stake in Renold. Purcell joined the group as Chief Executive Officer back in January in order to execute a strategic review to turn-around the struggling business.At the end of May, the firm revealed a set of "disappointing, if unsurprising, results", according to Chairman Mark Harper. Renold saw underlying revenue sink from £205.5m to £190.3m in the year ended March 31st, while it retreated to a loss before tax of £7.7m, down from a profit of £7.6m the year before.At the time, Purcell said that early findings of his strategic review pointed to a "clear need to reduce our break-even sales point and significantly improve our commercial positioning". He said that the company has "outmoded and sub-optimal working practices" across the group which contributed to the poor performance last year."The good news is that self-help measures will enable us to address these issues and to substantially improve performance over the medium term even without significant improvements in end markets sales. In addition, the more positive order intake trends which emerged in the fourth quarter are continuing," Purcell said.He said: "My focus now is on driving forward these measures to improve performance and generate shareholder value."Since his comments on May 28th, the stock has risen by nearly 20%, extending its year-to-date rise to 13.5% as of Monday's close. Nevertheless, the shares are still down 20% year-on-year.Top Director BuysBurberry Group (BRBY) Director name: Ms Angela AhrendtsAmount purchased: 59,689 @ 1,362.30p Value: £813,143Renold (RNO) Director name: Mr Robert PurcellAmount purchased: 1,500,000 @ 25.25p Value: £378,750Intercede Group (IGP) Director name: Mr Ian Ashley DrewAmount purchased: 17,000 @ 66.80p Value: £11,356Top Director SellsBurberry Group (BRBY) Director name: Ms Stacey CartwrightAmount sold: 214,944 @ 1,362.30p Value: £2,928,182Burberry Group (BRBY) Director name: Ms Stacey CartwrightAmount sold: 128,523 @ 1,362.30p Value: £1,750,869Severn Trent (SVT) Director name: Mr Anthony Paul WrayAmount sold: 2,057 @ 1,757.00p Value: £36,141Severn Trent (SVT) Director name: Mr Michael J E McKeonAmount sold: 1,905 @ 1,757.00p Value: £33,471Severn Trent (SVT) Director name: Mr Andy SmithAmount sold: 1,122 @ 1,757.00p Value: £19,714Severn Trent (SVT) Director name: Mr Martin KaneAmount sold: 952 @ 1,757.00p Value: £16,727Severn Trent (SVT) Director name: Mr Tony BallanceAmount sold: 761 @ 1,757.00p Value: £13,371