31st Jan 2019 09:42
LONDON (Alliance News) - Renishaw PLC on Thursday said its profit dipped despite an increase in revenue in the first half of its current financial year, boosted by strong growth across most of its operating regions.
The engineering company focused on measurement, motion control, healthcare, spectroscopy and manufacturing said pretax profit in the six months to the end of December declined 6.9% to GBP61.6 million from GBP66.2 million reported a year before, despite revenue rising by 6.2% to GBP296.7 million from GBP279.5 million. On a constant currency basis, revenue grew by 4%.
Adjusted pretax profit for the first half was GBP59.6 million, down 4.3% compared to GBP62.3 million last year. The current year has benefited from a GBP5.3 million currency gain, the company noted.
Distribution costs were 7.8% higher in the period at GBP63.8 million, while administrative expenses jumped by 20% to GBP29.0 million.
Renishaw maintained its interim payout at 14.00p a share.
The company said it has experienced revenue growth in all regions, aside from the Far East, where it saw a slowdown in demand for its encoder products and from large end-user manufacturers of consumer electronic products.
Looking ahead, Renishaw said it expects to report full-year revenue in the range of GBP635 million and GBP665 million. Pretax profit is anticipated at between GBP146 million and GBP166 million.
In its financial 2018, the company recorded pretax profit of GBP155.2 on a revenue of GBP611.5 million.
"Notwithstanding current economic uncertainties, the board remains confident in the future prospects of the group," said Chief Executive Will Lee.
The stock was trading 3.2% higher on Thursday at 4,504.00 pence a share.
Related Shares:
Renishaw