LONDON (ShareCast) - (ShareCast News) - Precision measurement products manufacturer Renishaw reported a jump in annual profit before tax and revenue but warned its profit is expected to be lower next year.
The FTSE 250 group said its pre-tax profit jumped 50% year-on-year to £144.2m, while revenue surged 39% to £494.7m.

Renishaw attributed the sharp increase in revenue to a number of sizeable orders from customers in Asia in the consumer electronics market and what it described as "exceptionally strong growth" in its metrology arm.

In a statement released on Wednesday, the group said that even excluding these large orders, underlying revenue rose 11% compared with the same period 12 months ago.

However, the London-listed group warned that full year revenue and profit for 2016 will be somewhat lower, with the former expected to be in the £460m-£485m range and the latter forecast to be between £85m and £105m.

The company, however, insisted it remained confident in its long-term prospects.

Analysts at N+1 Singer welcomed the strong results and described the forecast for 2016 as "broadly in line" with their expectations, but said the group might struggle to achieve its sales growth target.

"We have some concern that this is predicated on stretching sales growth of 16%, in a relatively slow growth industrial environment," they said in a note.

Shares in the company, which had dropped sharply on Tuesday in anticipation of bad news, bounced 3.5% to 2,032p by 09:10 BST on Wednesday.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE