Number Cruncher

November 20, 2012 11:41 pm

Renold’s new chief faces tough market

Incoming chief executive Robert Purcell, who starts in May, has a job on his hands at Renold, the industrial chain, gearbox and couplings maker.

Bob Davies, who is retiring from the 148 year-old Manchester business in December, is leaving it leaner and more internationally focused. But neither he nor Mr Purcell can change the global economy.

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In a depressed market, first-half sales at Renold’s larger chain division fell 7 per cent year on year, and margins narrowed to 2.5 per cent. Sales at Torque Transmission, which has higher margins, were broadly flat.

Trading on a forward price/earnings ratio of 7.9, the shares fairly reflect the poor performance this year.

Andrew Bounds

Six months to September 30, 2012 % change
Sales £96.7m -9.3
Pre-tax profit £2.1m -43
EPS 0.8p -38.5
Dividend 0p N/A

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