(Alliance News) - Renold PLC on Wednesday said profit growth in the first half of its financial year soared amid progress in cost reduction plans.
Shares in Renold rose 6.9% to 32.06 pence each in London on Wednesday morning.
The Derby, England-based supplier of industrial chains and power transmission products said in the six months that ended on September 30, pretax profit jumped 92% to GBP12.5 million from GBP6.5 million a year prior.
Revenue increased 7.7% year-on-year to GBP125.3 million from GBP116.3 million.
This was driven by "strong improvement" in the activity levels of its Torque Transmission division, as well as "continued growth" in its Chain division, the company said.
The company added that made "good progress on productivity improvements, cost reduction programmes and capital investment projects, accelerating the integration of group-wide supply chain and increasing operational capabilities".
Renold did not declare an interim dividend, unchanged from a year earlier.
The company added that its order book at September 30 totalled GBP83.6 million, a decrease of 16% from GBP99.0 million in the same period a year ago.
Looking ahead, Renold said it is "well-placed" to manage business risks, adding that it is "increasingly confident" in delivering full year results ahead of previous market expectations.
Chief Executive Officer Robert Purcell said: "I'm pleased to report continued progress which builds on the momentum the group has enjoyed in recent periods, delivering a record half year result. Sales, margins, profits and cash generation have all progressed well. Global markets continue to be uncertain, and we remain vigilant for changes in patterns of demand beyond the current order book shortening."
By Sabrina Penty, Alliance News reporter
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Renold (RNO)