30th Jan 2014 09:49
LONDON (Alliance News) - Renishaw PLC Thursday maintained its dividend and expressed confidence for the second half of the year despite declines in revenue and pretax profit, as its performance was hurt by strong year-earlier comparators for its first quarter.
In the half year ended December 31, 2013, the healthcare equipment company posted revenue of GBP164.0 million, down from GBP174.2 million in the previous year.
The company said this decline was due to a tough year-earlier comparison, as it saw particularly high revenue from Far East customers in the first quarter of the previous year.
Revenue for the first quarter was GBP79.0 million, down from GBP95.9 million. However revenue in the second quarter was GBP85.0 million, up from GBP78.3 million compared to the previous year.
Pretax profit was GBP25.6 million, down from GBP45.1 million in the previous year. The impact of lower revenue was exacerbated by higher sales costs, distribution costs and administrative expenses. In the previous year, pretax profit was boosted by a GBP2.9 million exceptional gain relating to a provision it had made for an earn-out.
During the half year, Renishaw saw revenue grow 13% in the Far East, 12% in the Americas, 11% in Europe, and 5% in the UK.
Renishaw said it expects to see trading activities and revenue improve in the second half and remained confident on its longer-term prospects as it continues to invest across its business sectors.
The company announced a dividend of 11.33 pence, maintained from the previous year.
Shares in Renishaw were trading up 5.7% Thursday morning at 1,901.00 pence, making them the top gainer among FTSE 250 shares. The stock opened lower at 1,721.00p following its announcement.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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