Renishaw up despite heavy profits drop

FTSE 250 precision tools manufacturer Renishaw (LON:RSW) saw its share price increase by 3.42% to 195.20p (as of 11:50 BST) despite reporting a 76% fall in pre-tax profits for the nine months ended 31st March. Total revenues dropped by 9.6% as the company was facing macroeconomic pressures before the pandemic, including the increased tension in US-China trade relations.

Management said that they expect extremely challenging trading conditions to continue through the coming periods, particularly in the aerospace and automotive sectors, but believe that the company is in a strong financial position and remain confident regarding its longer term prospects.