(Reuters) - Precision engineering company Renishaw Plc (L:RSW) forecast a 20-25 percent jump in full-year revenue and a 35-50 percent jump in adjusted pretax profit as it continued to see strong demand across its product lines.
Renishaw's shares rose as much as 11 percent to rank among the top gainers on the London Stock Exchange on Tuesday morning.
The company, which makes machine tool probes and gauges, had reported strong fourth-quarter and first-quarter results on the back of large orders from a customer in the Asia-Pacific region, which analysts linked to the launch of new products from Apple Inc (O:AAPL).
Contract manufacturers are believed to use Renishaw's tools, including precision measurement and calibration systems, to make Apple products. Analysts say the slew of new launches from the tech giant has increased demand for precision manufacturing tools such as those from Renishaw.
The company said it expected full-year revenue to be between 425 million pounds and 445 million pounds, compared with the 355.5 million pounds it reported for the year ended June 30.
Renishaw also said it would invest more to boost manufacturing capacity to meet growing demand for its products, and expected adjusted pretax profit to be between 95 million and 105 million pounds in the current financial year.
The company reported an adjusted pretax profit of 70.1 million pounds in the year ended June 30, 2014.
Before the company issued its statement, analysts on average expected a full-year pretax profit of 84.42 million pounds, on revenue of 393.7 million pounds, according to Thomson Reuters StarMine.
"Renishaw is enjoying extremely strong momentum and is set to deliver a year of very high profit growth in FY2015. However, we remain cautious about prospects for further growth in FY2016," N+1 Singer analyst Jo Reedman said.
Renishaw said in mid-October that first-quarter profit had doubled and revenue rose 28 percent, adding that the strong momentum had continued into the second quarter.
Renishaw said late in October that it expected the trend in revenue growth to continue into the second half.
Renishaw shares were up 10.3 percent at 1950 pence at 10:11 GMT. The stock has risen 14 percent since the company's first-quarter results.
(Reporting by Roshni Menon in Bangalore; Editing by Gopakumar Warrier)