Exchange rate blow to Renishaw

A maker of precision instruments saw its share price suffer today after it said £5m (€7.4m) would be wiped from profits if exchange rates remained the same.

Renishaw, which provides products enabling measurements to be taken to international standards, said it had been hit by adverse currency movements in the US dollar and Japanese Yen.

The Gloucestershire-based company, which made pre-tax profits of £38.1m (€56.5) in the year to June 30, said revenues were still ahead of last year in the first three months of the current financial year.

Ahead of its annual meeting, Renishaw said: “It is too early in the financial year to predict the outcome but, if the current exchange rates are sustained, there will be an adverse effect on group profits of an estimated £5m for the full year.”

Chairman David McMurtry added the company remained confident about its future prospects.

Shares were around 7% lower at 745p today.