Renold (LON:RNO) shares rose 11 percent at market open on Tuesday, after reporting a growth in organic revenue for the first time in several years.

The revenue growth failed to translate to a profit however, with pre-tax profit for the year through March falling to £1.4 million from £6.7 million the year previously.

Adjusted operating profit also fell to £14.2 million, despite recording a slight improvement in the second half on the back of beneficial movements in raw material costs and improved factory performance.

Chief executive Robert Purcell was positive about the results, saying:

“Through a combination of strategic action and improving market conditions, we have delivered organic revenue growth for the first time in a number of years.

“Order intake continues to remain strong with order books meaningfully ahead year-on-year.”

Growth is expected to continue in the coming year, with improving macroeconomic conditions set to strengthen order intake.

“Those same macroeconomic conditions are resulting in inflationary pressures on raw material costs and labour rates, which have also been impacted by legislative changes in some territories,” he said.

“Despite this, we expect growth, recovery of material price increases and continued efficiencies to overcome cost pressures and deliver improved adjusted operating profit margins.”

Shares in Renold (LON:RNO) are currently up 11.40 percent at 25.40 (0834GMT).