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Hardware & electrical equipment

Renishaw reports positive start to final quarter, sees higher full year profits

Renishaw (LON:RSW) topped the FTSE 250 leaderboard after telling investors that its full year profits are set to be ahead of the 2010/11 financial year.

Investors cheered the update, sending shares in the measuring and medical device manufacturer up 12 percent to 1,500 pence in early deals, valuing the engineering group at £1.1 billion.

Revenues for the first three months of 2012, which is the third quarter of the group’s financial year, reached £81.6 million, up four percent from a year earlier, taking the overall revenues for the nine months of the year to £228.8 million.

This was nine percent ahead of the £210.6 million revenues posted for the first nine months of the previous year.

During the quarter, Renishaw experienced growth in Europe, the UK and the Americas with sales to the US, which is its biggest single market, ahead of last year.

Revenues in the Far East were a little below the previous year, however, activity is picking up and Renishaw expects full year revenues to be ahead of 2011.

The group is upbeat about the rest of its financial year, seeing signs of an upturn in the electronics market.

The final quarter has started well, said Renishaw, with activities in April ahead of the same period of last year with full year pre-tax profits expected to recover the year to date shortfall and top last year’s £80.4 million profit.

“The board continues to view the future with confidence,” Renishaw told investors.

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