UK's Renishaw sees annual profit towards top end of outlook range

(Reuters) -British engineering firm Renishaw forecast annual profit towards the top end of its outlook range helped by measures to cut costs and despite U.S. tariffs, driving the shares up as much as 9% on Thursday.

The company expects annual revenue around the middle of the 700 million pounds to 720 million pounds ($941.57 million to $968.47 million) range, and adjusted pre-tax profit towards the top end of a 109 million pounds to 127 million pounds range, it said in a trading update.

Renishaw shares rose as high as 3,240 pence in early trading and were the biggest gainers among Britain's mid-cap FTSE 250 index, which was down 0.2%. Including session gains, Renishaw has pared its losses for the year to about 5%.

Renishaw had announced cost cuts in June, aiming to save 20 million pounds on annualised labour costs through restructuring, co-locating teams and exiting non-core activities.

It has also proposed passing on additional costs from U.S. tariffs to customers as it grapples with the levies due to the use of high-grade metals in its products, along with exposure through customers in aerospace, automotive and industrial machinery sectors.

The United States is the company's second largest market, accounting for about 20% of total revenue in 2024.

The outlook would suggest "little impact" from U.S. tariffs, and a favourable revenue mix or faster realisation of the proposed cost savings, Jefferies analysts said.

Renishaw also announced that long-time finance head Allen Roberts, appointed as group finance director in 1980, will step down at the end of the year.

Roberts has helped steer the group in recent years through strategy changes, COVID-19 lockdowns, U.S. tariff pressures and efforts to cut costs. The company said it has begun a search to recruit a chief financial officer.

($1 = 0.7434 pounds)

(Reporting by Unnamalai L in Bengaluru; Editing by Nivedita Bhattacharjee and Mrigank Dhaniwala and Elaine Hardcastle)