29th Jan 2015 08:16
LONDON (Alliance News) - Renishaw PLC Thursday raised its guidance for the full year and upped its dividend, as its pretax profit more than doubled in a strong first half.
Renishaw now expects to post a pretax profit of between GBP130 million to GBP150 million in the year ending June 30, 2015, on revenue of between GBP480 million to GBP510 million. The industrial measuring and healthcare equipment company's previous guidance was pretax profit of GBP120 million to GBP140 million on revenue of between GBP465 million to GBP495 million.
Renishaw raised its dividend for the half year to end-December to 12.5 pence per share, from 11.33 pence a year before.
The company posted a pretax profit of GBP56.6 million, more than doubled from GBP25.6 million a year before, on revenue of GBP223.8 million, up from GBP164.0 million.
Revenue growth was driven by the company's larger metrology business, where revenue rose 42% to GBP213.9 million from GBP150.7 million, boosted by larger orders from a number of customers in the Far East, particularly in consumer electronics. Excluding the orders from the Far East, revenue growth was 12% in the metrology business.
This offset a decline in revenue in its healthcare business to GBP9.9 million from GBP13.3 million, as a result of order delays in its spectroscopy products line. It expects to see growth in this products line for its full year.
"Research and development continues at a strong pace and a number of additional products will be introduced this year. Furthermore, we are expanding our sales and marketing activities throughout the group. We remain confident of the group's prospects for both this year and the future," the company said in a statement.
Shares in Renishaw are trading up 1.4% at 2,372.52 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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