Renishaw PLC (LSE:RSW) saw its shares drop on Thursday as it warned of a weakening outlook while reporting record full-year profits and revenue thanks to a recovery in its core markets.
The FTSE 250-listed engineering group saw its adjusted pre-tax profits increase by 37% to £163.7mln in the year to June 30, 2022, as its revenues rose 19% year-on-year to £671.1mln.
Renishaw said the records levels had been achieved "against a backdrop of a global recovery in all our key markets".
The company's core manufacturing technologies division saw revenues rise 20% to £634.6mln, boosted in large part by "record" demand for encoders, which are used in semiconductor production. Revenue for its analytical instruments and medical devices climbed 4% to £36.5mln.
In the results statement, Will Lee, Renishaw chief executive, said the firm had made a "positive start" to the current year, with a "strong" order book.
But he also gave a note of caution, adding: "We have, however, recently seen a weakening in order intake from the semiconductor and electronics sectors, and general market sentiment is becoming more cautious. In light of this, we are managing costs carefully and focusing on productivity."
In early trading, Renishaw shares shed 3.8% to 3,466p.