3rd Feb 2022 10:08
(Alliance News) - Renishaw PLC shares jumped on Thursday after the engineering firm reported a strong first half, as continued demand from the semiconductor and electronics sectors drives growth for a FTSE 250 company that failed to find a buyer last year.
Renishaw shares advanced 6.6% to 4,894.00 pence each in London on Thursday morning.
The Gloucestershire-based engineering and scientific technology firm reported pretax profit of GBP81.5 million in the six months to December 31, rising 27% from GBP63.9 million a year prior.
This came on the back of a 28% increase in revenue to GBP325.2 million, compared to GBP255.1 million the year before.
"We achieved very strong revenue growth in all regions and there was growth for all product lines within our Manufacturing technologies segment, most notably for the encoder and gauging lines. The strong demand for our encoder product lines continues to be driven by increased investments in industrial automation and the semiconductor and electronics capital equipment markets, while our gauging line is benefiting from a recovery in metal cutting operations and increased investments in shopfloor metrology," said Executive Chair David McMurtry.
Renishaw increased interim dividend by 14% to 16 pence per share from 14p.
Looking ahead, Renishaw said: "The board continues to be confident in our long-term prospects and ability to deliver on our purpose, due to our strong financial position, the high quality of our people, our innovative product pipeline, extensive global sales and marketing presence, and relevance to high-value manufacturing."
Back in July last year, Renishaw abandoned a formal sales process after failing to receive a sufficient takeover offer. Founders McMurtry and Non-Executive Deputy Chair John Deer had wanted to exit but instead kept their combined 53% stake.
Annual revenue is seen between GBP650 million and GBP690 million, up to 22% higher from GBP565.6 million in the previous financial year. Adjusted pretax profit is set to range between GBP157 million and GBP181 million, increasing up to 51% from GBP119.7 million.
"We currently have a record order book, and we expect demand from the semiconductor and electronics sectors to remain strong and that the recoveries in the machine tool market and co-ordinate measuring machine market will continue," Renishaw said.
By Greg Roxburgh; [email protected]
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