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Renishaw on track for new records

Created:
8 May 2008
Written by:
Stephen Gunnion

Renishaw's deliveries to large Japanese customer Mitutoyo have recommenced following the lifting of an export ban. Combined with strong demand from customers for its new Revo scanning head and favourable exchange rates, the group expects to report strong earnings for the year to June.

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The export ban on Mitutoyo put the brakes on profits last year and management now expects to beat the record pre-tax profit of £38.1m reported in 2006. Analysts at Numis Securities expect sterling's weakness against the euro and the Japanese yen to add about 10 per cent to 2008 profits as well and, accordingly, have increased profit forecasts for the group.

SHARE TIP UPDATE

Buy

Shares in Renishaw have held up well despite poor equity markets. We suggested buying them at 636p (10 January 2008) and, given the resumption of sales to Mitutoyo and the currency tailwind, they're still worth buying at 756p.

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