Renishaw’s Q1 trading update confirmed an expected decline in sales vs. a tough comparative, as large irregular orders from FY15 did not repeat. Meanwhile costs increased due to investment, reducing PBT by 23% to £16.3m. Guidance was reduced by c.4% for FY16 sales, although PBT guidance was maintained at £85-105m. Our forecast of £92.2m PBT is unchanged. However we think risk remains to the downside due to weakening industrial indicators, allied with Renishaw’s low visibility and high operationa ....
