Renishaw slashes full-year profit and sales forecasts

Renishaw slashed its outlook for full-year profits and sales after the engineer's bottom line fell further into the red amid what the company's management termed an uncertain economic backdrop.

For the nine months ending on 31 March, the company, which manufactures precision control and measurement equipment, posted an 18.8% fall in adjusted profits before tax to reach £79.6m.

That was alongside topline growth of only 0.3% to £431.1m. Sales in its metrology unit dipped by 0.5% to £404.5m, while at the Healthcare arm they jumped by 14.2% to £26.6m.

At the half-year stage, Renishaw's profits had been down by just 4.3% versus the comparable year ago period.

And now, based on the most recent order trends and feedback from customers, full-year revenue was pegged at between £580-600m, down from a previous range of £635-665m.

In turn, full-year adjusted profits before tax were now seen coming at between £105-120m, down from prior guidance for £146-166m.

The firm´s net cash balance did however improve, rising from £91.2m one year ago or £100.5m as recently as 31 December to £120.5m.

"Notwithstanding the current economic uncertainties, the Board remains confident in the future prospects of the Group," management said in a statement.

Renishaw's latest trading update was published ahead of its annual investor day which was scheduled for later in the day.

Preliminary full-year numbers were due out on 30 June.

As of 0817 BST, shares of Renishaw had crashed by 9.53% to 3,740.0p, but were off their intraday and 52-week low of 3,510.0p.