Skip navigation

Gloucestershire Business News

Shares take a double digit hit as Renishaw issues profit warning

Shares in Renishaw have taken a double-digit percentage hit this morning after the engineering giant issue a warning over profits.

Renishaw headquarters in Wotton-under-Edge

In a trading update released to the London Stock Exchange this morning, the Wotton-under-Edge based firm cut their forecast profit range by more than £20million.

Renishaw reported a slow down in demand in Asia for their encoder products in their half-year results released in January.

They have now told investors that they expect those "conditions to continue through the remainder of this financial year."

Renishaw are one of the world's leading engineering and scientific technology companies and employ more than 5,000 staff worldwide.

More than 2,000 of those staff are employed at their sites at their headquarters in Wotton-under-Edge and other county base in Nailsworth.


Click here to get the latest Gloucestershire news delivered to your inbox every day 


Announcing the news to the Stock Exchange, executive chairman Sir David McMurtry and chief executive Will Lee said that despite the lower forecasts the board remains "confident in the future prospects of the group."

The statement said: "In our half year results announcement released on 31st January 2019, we reported an expected revenue range for the year of £635m to £665m and an expected adjusted profit before tax range of £140m to £160m.

"Statutory profit before tax was expected to be in the range of £146m to £166m.

Sir David McMurtry, chairman of Renishaw PLC

"As reported in the half year results, we experienced a slow-down in demand in Asia for our encoder products and from large end-user manufacturers of consumer electronic products.

"Based on recent order trends and customer feedback, we now expect these conditions to continue through the remainder of this financial year.

"We now expect full year revenue to be in the range of £595m to £620m and adjusted profit before tax to be in the range of £117m to £135m.

"Statutory profit before tax is expected to be in the range of £123m to £141m.

"Notwithstanding current economic uncertainties, the Board remains confident in the future prospects of the Group."

Shares in the FTSE 250 company were trading between 10 and 12 per cent down this morning after the news.

Related Articles

Fashion brand with Gloucestershire HQ set to open Gloucester Quays store Image

Fashion brand with Gloucestershire HQ set to open Gloucester Quays store

Job adverts are being posted for a new outlet at the Gloucester Quays centre - and it's for a fashion brand with a county base.

Gloucestershire High Streets will benefit from £95 million government fund Image

Gloucestershire High Streets will benefit from £95 million government fund

A fighting fund of government money can help revitalise one of Gloucester’s historic city centre streets.

Aldi to invest £1 billion in new stores Image

Aldi to invest £1 billion in new stores

German discounter Aldi plans to open 100 new stores across the UK over the next two years.

PICTURES: Tayntons Solicitors charity quiz raises £1,000 for Maggie's Image

PICTURES: Tayntons Solicitors charity quiz raises £1,000 for Maggie's

A team of brainboxes from Hazlewoods were crowned as more than £1,000 was raised for Maggie’s in the Tayntons Solicitors charity quiz.

Copyright 2019 Moose Partnership Ltd. All rights reserved. Reproduction of any content is strictly forbidden without prior permission.