Renishaw first half lifted by China orders

Precision tool maker Renishaw carved out a sharp increase in half yearly earnings, after it was boosted by a string of large consumer electronics orders in China, but cautioned it faces tough financial comparators in the second half.

Adjusted pre-tax profit rose to £43.3m in the six months to December 31st from

£31.2m the same time a year earlier. Revenue for the period was up 18% to £174.2m.

"In the first quarter the group benefited from a number of large orders in China in the consumer electronics market. Such irregular orders produce a distorting effect when comparisons are made between periods."

Rensiahw said it was difficult to predict with certainty the size and timing of forthcoming orders and added that it faces tough financial comparators during the second half, particularly after its strong fourth quarter last year.

The group therefore currently expect that revenue in the second half will be around the level in the second half of last year.

An interim dividend of 11.33p will be offered compared to 10.3p last year.

CJ