StockMarketWire.com - Industrial chains supplier Renold booked a fall in first-half profit, citing a more challenging economic backdrop.

Net profit for the six months through September dropped to £0.8m, down from £2.1m on-year, and included a loss of £1.5m from a discontinued operation in South Africa.

Pre-tax profit from continuing operations fell more modestly to £3.5m, down from £3.5m.

Underlying revenue from continuing operations fell 2.6% to £98.2m, while reported revenue from continuing operations was unchanged.

'A more challenging economic backdrop impacted on revenue and order intake in the first half of the year,' chief executive Robert Purcell said.

'Despite this, ongoing actions to improve the business have sustained profits and improved margins.'

'In addition, we have seen further strategic evolution in the group's manufacturing footprint with the exit from the non-core South African torque transmission business, the purchase of the minority stake in the Indian chain business and the ongoing successful ramp-up of the Chinese facility.'

'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.'

At 8:29am: [LON:RNO] Renold PLC share price was -1.05p at 19.95p



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