- Industrial chains supplier Renold booked a substantial fall in annual profit and scrapped its dividend, citing challenging markets throughout the year and the initial impact of the Covid-19 crisis.

Pre-tax profit for the year through March more than halved to £4.9m, down from £10.4m on-year, as revenue slipped 5.1% to £189.4m.

Net profit fell to £1.9m, down from £6.7m, including a £1.5m loss from discontinued operations.

Renold said that all of its sites were now operational, although some were operating at reduced capacity.

Its financial position had been strengthened by an agreement with lenders to amend banking covenants, creating increased flexibility through to September 2021.

'Prior to the Covid-19 pandemic, the group was on track to deliver improved adjusted operating margins despite a challenging market backdrop resulting in a revenue decline,' chief executive Robert Purcell said.

'During the final quarter of the year, the initial impact of the Covid-19 pandemic created short-term disruption and a number of operational challenge,' he added.

'Renold reacted quickly to these challenges, ensuring the safety and welfare of all our employees, compliance with local restrictions and continuity of supply to customers, while at the same time taking steps to reduce costs and preserve cash flow.'

"The uncertainty caused by the Covid-19 pandemic is likely to result in a period of volatile demand, preventing the board from giving specific guidance for the year ahead at this stage.'

'The group's financial position has been strengthened by the flexibility provided by our lenders and the trustee of the UK pension scheme.'

'Together with the cost and cash actions taken, this supports the board's confidence that the group will be able to manage through the current period of disruption.'

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