The octogenarian co-founders of Renishaw saw the value of their stake soar after the precision engineering group delivered an upbeat assessment of the months ahead.
Sir David McMurty, 83, and John Deer, 86, set up the company in 1973 and are still on the board today as chairman and deputy chairman respectively.
The FTSE 250 group reported a challenging half-year with revenues down 5 per cent to £330.5million in the six months to the end of December and profits fell 27 per cent to £56.5million.
But Renishaw chief executive William Lee said ‘we expect an improvement in our trading performance in the second half of the financial year’.
It is now looking to make annual revenues of between £675million and £715million and a profit of £122million to £147million.
Bouncing back: Renishaw reported a challenging half-year with revenues down 5% to £330.5m in the six months to the end of December and profits fell 27% to £56.5m
This compares with analyst forecasts of £674million of revenues and £132million of profit. Shares soared 16 per cent, or 550p, to 3986p.
That sent the value of the combined 53 per cent stake held by McMurtry and Deer up £212million to £1.53billion.
The pair put their shares up for sale in March 2021 and attracted interest from companies such as Siemens, Hexagon and Schneider Electric.
But months later they chose against selling the business and their stock after failing to find a suitable buyer.
Renishaw specialises in metal 3D printing which has been used by others to make products such as a titanium watch strap.
It also makes neurological products that help clinicians, including devices that can be implanted to treat patients who suffer from serious central nervous system (CNS) diseases.
The FTSE 100 rose 0.9 per cent, or 68.15 points, to 7681.01 and the FTSE 250 gained 0.8 per cent, or 152.79 points, to 19171.34.
Stock Watch – Quadrise
Shares in a London-based energy tech provider jumped after it signed an agreement to produce two biofuels designed to help ships reduce their emissions.
AIM-listed Quadrise will work with Cargill, a major global supplier of renewable biofuels, and Antwerp-based MAC – part of Group Machiels a global operator in environmental services – as part of its marine vessel trials for the container ship MSC Leandra.
Shares soared 25.7 per cent, or 0.5p, to 2.62p.
Defence stocks were riding high. BAE Systems added 2.3 per cent, or 26.5p, to 1205.5p after it was upgraded by analysts at Bernstein and Rolls-Royce increased by 2.6 per cent, or 8p, to 317.8p, its highest level for nearly five years.
Prudential’s rating was raised by analysts at Barclays who expect the Asia-focused insurer to cash in on India’s growing insurance market. Shares rose 3.8 per cent, or 31.4p, to 849.2p.
But Ladbrokes and Coral owner Entain sank after Barclays flagged concerns over its recovery.
The broker said that the betting giant needs to see an improved performance for its online arm and in the US though neither are certain. Shares fell 2.4 per cent, or 23.8p, to 966p.
Sales at the electronics components business Discoverie slowed in the four months to the end of December. Shares dropped 0.5 per cent, or 4p, to 762p.
Education publisher Pearson was on the slide. Analysts at Barclays warned that demand for its English Language tests could be affected by Canada’s plans to cap student visas and Australia seeking to reduce migration.
Shares slipped 3 per cent, or 29p, to 939.6p. There was a triple dose of good news, however, for investors in GSK.
The pharmaceuticals giant reported positive updates for its drugs that help to treat the blood cancer multiple myeloma, shingles and respiratory syncytial virus (RSV) disease.
Despite the good news, shares fell 0.6 per cent, or 9.6p, to 1653p.
Beeks, the financial services group, enjoyed a great session after it announced that it has won two major contracts and expects its results for the next financial year to be ‘significantly ahead’ of previous forecasts.
Shares surged 31.9 per cent, or 34.5p, to 142.5p.
Also on the rise was Futura Medical after the consumer healthcare company made its first revenues generated from product sales last year. Shares jumped 40.7 per cent, or 11.1p, to 38.8p.
