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Renishaw warns on profits for second time this year

“Notwithstanding the current economic uncertainties, the board remains confident in the future prospects of the group”
Renishaw had only just lowered its full-year guidance in March

Precision engineer Renishaw PLC (LON:RSW) has issued its second profit warning in almost as many months, blaming “current economic uncertainties”.

The metrology and healthcare technology group lowered its full-year guidance for revenue and profit, following a similar move in March that was blamed on weakness in demand in Asia.

READ: Renishaw warns full-year results will miss its previous guidance as a slow-down in demand has continued

On Tuesday, management guided to revenues of £580-600mln and adjusted profit before tax of £105mln-£120mln from the previous expectations of £595mln-£620mln and £117mln-£135mln.

Going into 2019, the FTSE 250-listed group had been targeting revenue of £635mln-£665mln and adjusted PBT of £140mln-£160mln.

For the nine months to 31 March, adjusted PBT is down more than 18% year-on-year to £79.6m, although total revenue has held firm at £431.1mln.

Revenues from the Metrology business were just below flat at £404.5mln, while Healthcare sales were up 14% to £26.6mln.

The balance sheet showed net cash balances of £120.5mln, versus £103.8mln at the end of last June.

On the outlook, Renishaw said the continued focus was on “increasing productivity and on-going investment in the business for the long term”.

“Notwithstanding the current economic uncertainties, the board remains confident in the future prospects of the group.”

Shares in the company were down more than 5% to 3,902p on Tuesday morning.

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