Renold shares (LON: RNO) surged 6.42% on Wednesday after the group reported resilient margin performance and strong cash generation.
For the half-year ended 30 September 2020, the group revealed a fall in revenue from £98.2m a year ago to £81.5m.
Pre-tax profit fell from £3.5m to £2.8m.
Renold has a new factory in China, which is continuing to “improve on time delivery, efficiency and productivity.”
Robert Purcell, the chief executive of Renold, said:
“Whilst the market environment continues to be challenging, the strategic actions taken in recent years, augmented by the measures taken earlier this year in response to the Covid-19 pandemic, have resulted in a more resilient business that is better placed to overcome today’s challenges.
“Renold reacted quickly to the sharp decline in order intake arising from the pandemic and, as a result, delivered a robust operating margin and substantial reduction in net debt. I would like to thank all employees for their commitment and outstanding efforts in keeping our facilities open and serving our customers during this time.
“The tight focus on cost and cash management in the first half has created a platform from which we can manage through short-term disruption. We are focused on ensuring Renold can respond strongly as markets recover.”
Renold shares (LON: RNO) are +8.26% at 11,80 (1511GMT). This year to date, shares have fallen from a high of 21,80.