LONDON (ShareCast) - British engineering company Renishaw saw its half-year profits more than double following an increase in machine tool orders from Far East customers in its industrial metrology division.
Revenues during the first half of the year rose 36% to £223.8m and profit before tax jumped by 121% to £56.6m.

Earnings per share also increased significantly to 64.2p from 29.5p, while interim dividend rose 10% to 12.5p per share.

The metrology division saw "exceptionally good growth" in its machine tool products line and in the consumer electronics markets, driving revenues up 42% to £213.9m.

However, its healthcare sector increased losses to £5.7m from £2.3m last year due to order delays in its spectroscopy products line, though the company still expects full-year growth.

Chairman and chief executive David McMurtry said: "Research and development continues at a strong pace and a number of additional products will be introduced this year. Furthermore, we are expanding our sales and marketing activities throughout the group.

"We remain confident of the group's prospects for both this year and the future," he continued.

Investec analysts said: "The metrology business is seeing exceptional demand, but it is spread over several product categories and new launches in H2 should help to support underlying momentum.

"Renishaw stands out from the crowd for its growth, at a time when other companies are far more circumspect."

In a more negative note, Numis brokers recommended investors to 'hold' their shares and gave a price target of 2200p, which was below the current share price at 2352p.

"For now we continue to assume a decline in 2016 performance year-on-year given the exceptional strength in this financial year," the broker said.

Shares were up 0.47% to 2352p on Thursday at 10:45.

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