Renishaw cuts annual profit forecast, but Board remains confident on future prospects

W Renishaw HQ

Renishaw plc, the Gloucestershire-headquartered global high-precision metrology and healthcare technology group has cut its annual profit forecast, but the Board says notwithstanding the current economic uncertainties, it remains confident in the future prospects of the Group.

Based on recent order trends and customer feedback, it now expect full year revenue to be in the range of £580 million to £600 million . Adjusted profit before tax is now expected to be in the range of £105 million to £120 million and statutory profit before tax in the range of £111 million to £126 million.

In it published trading update for the nine months ended 31 March 2019, the company says it continues to focus on increasing productivity and on-going investment in the business for the long term.

Revenue from continuing operations for the first three quarters of the current financial year was £431.1 million, an increase of 0.3% compared with £429.9 million for the corresponding period last year.

Metrology revenue for the nine months to 31 March 2019 dipped to £404.5 million compared with £406.6 million for the same period last year. However revenue in its healthcare business has grown to £26.6 million compared to £23.3 million for the same period last year, an increase of 14.2%.

Adjusted profit before tax from continuing operations for the first three quarters dropped to £79.6 million compared with an adjusted profit before tax of £97.6 million for the corresponding period last year. Statutory profit before tax amounted to £84.8m (2018: £104.4m).