Shares in engineering firm Renold dived over seven per cent after the company swung into heavy losses in the full year ended 31 March 2010.

Revenue declined by more than a third from £194.7 million last year down to £156.1 million. In addition last year the company made a pre-tax profit of £2.9 million but this year reported a pre-tax loss of £13.6 million.

Renold said it had cut its net debt by £19.3 million through fund-raising and added that it had achieved planned annualised cost reductions of £13.0 million.

Despite making a significant loss this year the group said it was "well placed for recovery", pointing out that it had returned to operating profit before exceptional items in the second half of the year and had diverse markets and geographies and a lower cost base.

Matthew Peacock, Chairman of Renold, said, "As a result of the global economic crisis the Group experienced a difficult year. However, with a significantly lower cost base and stronger balance sheet we look forward to delivering improved results as the economic climate recovers. Our present sales and order run-rate give us grounds for optimism."

By 12:39 shares in Renold were down 7.20 per cent to 25.12 pence per share.