- Metrology and healthcare technology group Renishaw said its profit had slumped 77% in the first nine months of its financial year, thanks to US-China trade tensions that have worsened during the Covid-19 crisis.

Pre-tax profit for the nine months through March had fallen to £19.7m, down from £84.8m on-year. Revenue slid 9.6% to £389.9m.

Renishaw said it expected revenue for the full year in the range of £490m-to-£505m.

Pre-tax profit was now expected at between £31m and £41m, with profits in quarter four expected to benefit from reduced operating costs and a favourable currency impact.

'The global macroeconomic environment has been challenging for the group during this nine-month period,' Renishaw said.

'Even before the pandemic, we were facing trading challenges including the ongoing uncertainty caused by the trade tensions between the US and China and weaker demand in the machine tool sector.'

'We also faced tough comparators with the 2019 trading year, which benefitted from a number of large orders from end-user manufacturers of consumer electronic products in the APAC region.'

'However, despite subdued demand conditions overall, we have seen growth in our optical and laser encoder product lines due to a recovery in the semiconductor market.'

The company had in March announced that it was scrapping its 14p per share interim dividend.

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