- Industrial chains and power transmission equipment group Renold said the coronavirus outbreak was expected to chop £1m from its annual operating profit.

The company had already been under pressure, having warned in November that it was experiencing challenging market conditions in the US and Europe.

Renold has a 31 March balance date and said Friday those challenging conditions had continued into the second half of its financial year.

In that context, however, it said had mitigated that impact with efficiency measures and had been on track to meet operating profit expectations.

However, that guidance had since been hurt by the coronavirus outbreak.

Renold's factory in China had re-oponed but staffing levels had not yet fully recovered due to continuing limitations on the movement of employees.

'In addition, the extensive disruption and the limited visibility of third party supply chains into both the Chinese factory and our Australasian chain business, means that there remains uncertainty as to the performance of these business units over the coming months,' the company said.

'We are working closely with customers and suppliers to mitigate the impact of these factors but now expect there will be a profit drag across February and March that will not be recoverable before the end of the year.'

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