Renishaw lifts annual revenue expectations, shares rally

Renishaw shares rallied on Friday after the engineer lifted its full-year revenue expectations but downgraded its expectations for statutory pre-tax profit.

In a brief update for the year to the end of June, the company said annual revenue is expected to come in at around £510m, up from guidance of between £490m and £505m given in its last update in May. Adjusted pre-tax profit is expected to be around £50m; the company had given a range of £45m to £55m in May.

However, statutory pre-tax profit was forecast at approximately £4m, down significantly from the £31m to £41 guidance earlier in the year. Renishaw highlighted restructuring costs of about £24m following the reorganisation and rationalisation of certain operations, particularly related to its additive manufacturing business.

"In light of the pandemic, the board has focused on cash preservation and the group balance sheet remains strong," it said.

The company also said that its preliminary results for the year will be released on 13 August.

At 0840 BST, the shares were up 4.4% at 4,624p.