Renold sees signs that sales slump is ending

Industrial chain manufacturer Renold says the 25% decline in its sales, experienced in the first quarter of the year, appear to have stabilised and that customers destocking may be abating.

Renold, who's chain products are used in many industries including transportation, steel and mining, said in a management statement covering the period since April 1, "trading had been in line with the board's expectations" and added: “Sales declines appear to have stabilised and, although we have no expectation of customers restocking in the short term, there are indications that in some areas destocking may be abating.”

In July the company said pre-tax profit fell to 2.9 million pounds for the year to the end of March, down from 9.3 million pounds a year earlier. Shares in Renold, which have lost two-third of their value in the last year, closed at 26 pence on Thursday, valuing the group at around 20 million pounds.
Richard Hewitt - Acorn Industrial Services Ltd: www.acorn-ind.co.uk