11th Nov 2014 11:30
LONDON (Alliance News) - Shares in Renishaw PLC jumped higher on Tuesday after the company issued full-year profit guidance indicating it will continue to improve in the rest of its financial year.
The precision engineering company was comfortably the best performer in the FTSE 250 throughout the morning, with shares up 9.8% to 1,942.00 pence in late morning trade.
The company, in a short trading statement, said it anticipates its pretax profit for the 2015 financial year to be between GBP95 million and GBP105 million, on revenue of GBP425 million to GBP445 million. This compares to GBP96.4 million in pretax profit and GBP355.5 million in revenue in the year to June 30.
The forecast indicates the company expects its profit growth to accelerate in the remainder of the year, having posted a GBP21.3 million profit in the first quarter of the year to the end of September. That increase was itself around double the pretax profit it posted in the first quarter of 2013 of GBP10.6 million and was hit to the tune of GBP3.3 million by the strength of sterling.
Revenue in the first quarter also increased to GBP101.4 million, meaning the new forecast also indicates a further acceleration of revenue growth over the rest of the year.
In the trading statement it released on the first quarter in October, the company said it expects the growth trend to continue into the second half of the financial year.
The company also said it has continued to see strong demand across its product lines and will up investment in manufacturing capacity in order to meet this demand.
By Sam Unsted; [email protected]; @SamUAtAlliance
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