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

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.

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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.

"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.