Renishaw warns on profits

In a trading statement, the Gloucestershire-based company said it had experienced lower demand for its products than it had anticipated at the time of its interim management statement in October. As a consequence it expected that the results for the year to 30th June 2009 will be significantly below current market forecasts. A more detailed update on current trading and the outlook for the full year will be provided with Renishaw’s interim results on Wednesday (28 January). Revenue for the six months to 31st December 2008 is expected to be £102.7m, an increase of 12% over the £91.6m for 2007; but this revenue includes an £11.5m exchange rate benefit due to favourable currency movements compared with the previous year. Operating profit is expected to be £11.9m, compared with £13.0m in 2007, after charging £1.4m in respect of the legal costs relating to current patent infringement litigation in the United States. At constant exchange rates, operating profit would have been £4.7m. Profit before tax amounted to £14.0m, compared with £15.1m. Profit after tax was £11.2m (2007 £12.1m).