Half year ended
Adjusted results at constant exchange rates
Revenue at constant exchange rates
Adjusted operating profit at constant exchange rates
Adjusted operating profit margin at constant exchange rates
Adjusted earnings per share
Profit before tax
Basic earnings per share
Revenue from continuing operations down 17.0% to £81.5m, a resilient performance despite the impact of the Covid-19 pandemic
Adjusted operating profit from continuing operations at constant exchange rates of £5.8m (2019: £7.7m); adjusted operating margin 7.1% (2019: 7.9%), reflecting actions taken in both the current and prior years to improve the flexibility of the cost base
Strong cash generation resulting in a £10.2m reduction in net debt to £26.4m (31 March 2020: £36.6m); with net debt to adjusted EBITDA ratio of 1.2x (31 March 2020: 1.5x)
Adjusted EPS of 1.1p (2019: 1.5p)
Trading and operational highlights
Resilient margin performance and strong cash generation, as a result of focused working capital management, completion of restructuring program and careful reduction of costs
The impact of the Covid-19 pandemic on revenue is being partly mitigated by improved efficiency and productivity from recent years' capital investments and operational improvements
Order intake at the start of the period reflected customer destocking, however, trends through the period end suggest a continued modest improvement, albeit at levels below the prior year in the near term, this was most evident in India, South East Asia and to a lesser extent parts of Europe
The new factory in China continues to improve on time delivery, efficiency and productivity
Robert Purcell, Chief Executive of Renold plc, 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."