Shares in Renishaw PLC (LSE:RSW) were ratcheted over 7% higher after the engineer reported profits at the top end of guidance for the year to June, saying the markets it sells into are heading for "further steady growth" in the year ahead.
The maker of precision measuring and manufacturing tools generated £713 million, up 3.1% from the prior year thanks to the ongoing recovery in the semiconductor market, while adjusted profit before tax rose 3.8% to £127.2 million.
Operating profit margin remained steady at 15.7% on an adjusted basis. Statutory profit before tax declined 3.7% to £118 million due to non-recurring costs, including the closure of its Edinburgh research facility and tax-related provisions.
CEO Will Lee said the FTSE 250 group continued to see rising demand from the semiconductor manufacturing equipment market, counterbalanced by lower demand from the automotive sector.
"However, opportunities in other sectors, including consumer electronics, helped offset that weakness and highlighted the strength of having a business that serves multiple sectors."
The company declared a full-year dividend of 78.1p per share, a 2.5% increase, with cash totalling £273.6 million at year-end.
Looking at current and forward prospects, Lee said: "Despite the continued global uncertainty, the structural drivers that underpin our markets are presenting growth opportunities across our businesses and at this stage we are expecting to achieve further steady revenue growth in the year ahead."
The shares rose 7.5% to 3,435p, their highest since February.
** Update: Adds share price **