WYTHENSHAWE-based engineering firm Renold has described full year results as "disappointing" - though turnover and profit were up.

And the company has started the new year with good order books.

Renold, which makes chains and gears used in escalators and ship's engines, has been hit by the fall in the value of the dollar, and increased steel prices.

Turnover for the year ended April 3 was up to '192.1m compared to '187.4m the previous year.

Pre-tax profit improved by '2.2m to '6.4m from the previous year's '4.2m, but that took into account the sale of the former Jones & Shipman site at Leicester.

The weakness of the US dollar impacted on returns in UK and European factories in the second half, with automotive productivity gains offset by adverse currency movements.

Finance Director Steve Mole said: "We are pretty well where we expected to be. We have a good order book in North America, but Europe has not matched what we have seen in the States. And there are two flies in the ointment - the exchange rate and the growing increase in steel prices,"

But the group is encouraged by stronger orders in the final quarter and says potential opportunities are the improving US economy and prospects in the rapidly growing economies of the Far East, particularly China.

Chairman Roger Leverton added: "Overall the group entered the new financial year with a healthier order book, however, concerns remain over commodity prices and exchange rates."

The group employs 550 people in factories at Bredbury, near Stockport, and Milnrow, Rochdale and a further 27 at its head office. Globally it employs 2,800.

Final dividend is maintained at 3p giving 4.5p for the year, the same as last year.

Shares remained unchanged in early trading, at 76p. Tweet