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Pin to quick picksRenishaw Share News (RSW)

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UPDATE 2-UK engineer Renishaw sees big jump in revenue, profit

Tue, 11th Nov 2014 10:14

* Sees FY revenue between 425 mln stg and 445 mln stg

* Sees FY adjusted pretax profit of 95 mln-105 mln stg

* Shares rise as much as 11 pct, among top LSE gainers (Adds analyst comment, estimates, share movement)

Nov 11 (Reuters) - British precision engineering companyRenishaw Plc forecast a 20-25 percent jump in full-yearrevenue and a 35-50 percent jump in adjusted pretax profit as itcontinued to see strong demand across its product lines.

Renishaw's shares rose as much as 11 percent to rank amongthe top gainers on the London Stock Exchange on Tuesday morning.

The company, which makes machine tool probes and gauges, had reported strong fourth-quarter and first-quarter results onthe back of large orders from a customer in the Asia-Pacificregion, which analysts linked to the launch of new products fromApple Inc.

Contract manufacturers are believed to use Renishaw's tools,including precision measurement and calibration systems, to makeApple products. Analysts say the slew of new launches from thetech giant has increased demand for precision manufacturingtools such as those from Renishaw.

The company said it expected full-year revenue to be between425 million pounds and 445 million pounds ($674 million to $705million), compared with the 355.5 million pounds it reported forthe year ended June 30.

Renishaw also said it would invest more to boostmanufacturing capacity to meet growing demand for its products,and expected adjusted pretax profit to be between 95 million and105 million pounds in the current financial year.

The company reported an adjusted pretax profit of 70.1million pounds in the year ended June 30, 2014.

Before the company issued its statement, analysts on averageexpected a full-year pretax profit of 84.42 million pounds, onrevenue of 393.7 million pounds, according to Thomson ReutersStarMine.

"Renishaw is enjoying extremely strong momentum and is setto deliver a year of very high profit growth in FY2015. However,we remain cautious about prospects for further growth inFY2016," N+1 Singer analyst Jo Reedman said.

Renishaw said in mid-October that first-quarter profit haddoubled and revenue rose 28 percent, adding that the strongmomentum had continued into the second quarter.

Renishaw said late in October that it expected the trend inrevenue growth to continue into the second half.

Renishaw shares were up 10.3 percent at 1950 pence at 1011GMT. The stock has risen 14 percent since the company'sfirst-quarter results. ($1 = 0.6309 British pound) (Reporting by Roshni Menon in Bangalore; Editing by GopakumarWarrier)

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