Volatile end markets were to blame for a 4 per cent slide in underlying sales at Renold (RNO), in an annual meeting statement that sent its shares down 4 per cent. But while tepid demand and the lack of a repeat of last year's big Swiss project win hurt, cost-cutting measures ensured that adjusted operating profit and margins continued to rise.
IC TIP:
Buy
at
83p
The industrial chains and power transmission products specialist is also confident that its self-help measures will boost sales. Management has implemented a plan to expand in high-growth territories, invest in new capabilities and improve commercial focus. In response, broker N+1 Singer has kept its adjusted EPS forecasts for the year to March 2016 unchanged at 5.6p.
