- Engineering company Renishaw has announced a decline in revenue for the first-half of 2020, while pre-tax profit also fell, due to the ongoing US-China trade tensions and weaker demand from the machine tool sector.

Revenue for the six months ended 31 December 2019 was £259.4m, down 8% on the £296.7m recorded in the same period a year earlier.

Renishaw reported adjusted pre-tax profit of £14.3m in the first-half period, compared with adjusted previous year of £59.6m, which it said was primarily due to the reduced revenue.

Statutory pre-tax profit in the first-half slumped to £9.9m, down from £61.6m last year, which includes a £2.2m charge for restructuring costs and a £2.1m loss from the fair value of derivatives not included in adjusted profit before tax.

In a statement, executive chairman Sir David McMurtry and chief executive Will Lee called it a 'challenging trading period' for the group due to the global macroeconomic environment, 'including the ongoing uncertainty caused by the trade tensions between the USA and China and weaker demand in the machine tool sector'.

McMurtry and Lee said: 'The first half of 2019 also benefitted from a number of large orders from end-user manufacturers of consumer electronic products in the APAC region which have not been repeated this year.

'There are, however, some positive indications of recovery in the semiconductor market which has benefitted our encoder lines.'

The board has approved an interim dividend of 14 pence net per share which will be paid on 6 April 2020.

At 8:23am: [LON:RSW] Renishaw PLC share price was +13p at 4173p

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