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Renold PLC said on Wednesday it doubled its profit despite supply chain troubles, cost pressures and material availability in the year.
The Manchester-based industrial chain maker reported a pretax profit of £12.4 million in the year ended March 31, more than double the previous year's figure of £6.1 million.
Revenue rose 21% at constant exchanges rates to £195.2 million, up from £160.8 million the previous year.
Renold explained that multiple businesses across the company delivered record results in the year and noted a strong rebound for its markets post-Covid.
The company also boasted improved order intake as well as a record order book. Order intake rose 32% to £223.9 million from £170.0 million the previous year while the order book at March 31 sat at £84.1 million, 57% ahead of the previous year.
Renold cited its successful capital investment strategy and improving efficiency for its strong performance. This, it added, was achieved despite significant economic uncertainty, cost pressure, material availability and global supply chain disruption.
Despite the impressive performance, Renold decided against a dividend payout for the year. The company explained this is because it believes that ‘both organic and inorganic investment opportunities... will deliver higher levels of shareholder return over the medium term than the payment of dividends.’
Looking forward, Chief Executive Robert Purcell said: ‘We are cognisant that there remain considerable Covid-19-related challenges in some parts of the world; supply chain issues are still prevalent and inflation is high. However, we have entered the new financial year with good momentum and a belief in the excellent fundamentals of the Renold business upon which we are building.’
Shares in Renold were up 3.7% at 29.20 pence on Wednesday morning in London.
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