Industrial machinery manufacturer Renold Plc (LON:RNO) has seen its profits spike after passing through increased raw material costs and boost revenues with higher prices. This represents another positive boost for engineering firms listed in the capital.
Pre-tax profit for the first half through September was up 71% on-year to £4.1 million, up from £2.4 million for the same period last year.
Similarly, the firm are enjoying a boost in revenues, which are up 4.5% percent between 2017 Q1 compared to Q1 2018.
“I am pleased to report that we have made good progress in addressing the short-term issues encountered last year,” Renold Chief Executive Officer Robert Purcell said.
“The improvement is most pronounced in the Chain division, where we are seeing benefits from the many actions implemented.”
“Our strategy is delivering a more robust, higher margin business and we look forward to continuing current momentum into the second half of the year.”
The company are in the midst of a strategic overhaul, with the recent build of a new factory in the Jiangsu region of China. The firm are also considering a switch the AIM market in London, which it believes will give it the “ability to execute transactions with greater efficiency and certainty.”
Renold shares are currently trading up 6.35% or 2.2p, up to 38.8p a share 13:59 GMT.
Peel Hunt have initiated their first rating of Renold stock, with a ‘Buy’ stance as of today.