Manufacturing tech firm Renishaw said its profits had slid in the past quarter as it braces for a rise in costs and a slowdown in orders over the next three months.
The London-listed firm said revenues rose to £179.9m, up from £157.8m in the same period last year, including a £4m boost from exchange rates. But rising costs offset the revenue boost as pre-tax profits came in at £38.6m, down two per cent on £39.3m last year.
Bosses said it had been a “positive start to the current year” and its pipeline remains strong despite recent slowdown in orders.
“We have, as recently reported, seen a weakening in order intake from the semiconductor and electronics sectors, and general market sentiment is becoming more cautious,” the firm said in a statement.
“In light of this, we are managing costs carefully and focusing on productivity. Overall, we’re confident in our strategy and the investments we’re making in people and infrastructure to deliver sustainable, long-term growth, and we look forward to the year ahead.”
It added that its balance sheet “remains strong” with net cash and bank deposit balances of £258.6m at the end of September, up from £253.2m last year.
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