PUNT OF THE WEEK: Manchester-based manufacturer Renold has a three-point plan to boost profits
Renold makes components used in heavy lifting equipment, conveyers, escalators and even roller coasters
WHAT IS IT?
Manchester-based specialist manufacturer Renold may not be a household name, but the £65million company makes precision-engineered components used in heavy lifting equipment, conveyers, escalators and even roller coasters.
WHAT’S THE LATEST?
Profits have been weighed down recently by increased raw material prices, including steel at its US operations which has been affected by President Trump’s tariffs.
Rising labour costs, internal production problems and shake-up costs have also hit the business.
WHO BACKS IT?
Familiar names make up the biggest shareholders including M&G, Janus Henderson, Schroders and JP Morgan.
WHY YOU SHOULD INVEST
Bosses are tackling the sliding profits with a three-point plan, broker AJ Bell’s Russ Mould notes. This involves cutting costs, driving efficiency through a new facility in China, and planning select acquisitions.
…AND WHY YOU SHOULDN’T
Mould adds: ‘The turnaround could take longer to effect than expected, especially if the US-China trade war heats up or the global economy cools down.’