RENISHAW Plc, the high-tech metrology firm based in Wotton-under-Edge, has announced continued growth in its worldwide operations.

The company's turnover for the unaudited six months up to December 31 last year was £72.5 million, a rise of 24 percent compared with the same period in 2003 when the figure was £58.6 million.

Meanwhile, the unaudited operating profit for the second half of 2004 was £10.8 million, almost double the £5.6 million for the equivalent period the year before.

Profit before tax was £12.2 million (£6.6 million in 2003), which resulted in an increase of 76 percent in earnings per share to 13.4 pence compared to the 7.6 pence of 2003.

An interim dividend of 6.1 pence per share, up from 5.61 pence in 2003, will be paid on April 11 to shareholders on the register on March 11.

As of December 31 last year the company's net cash balance was £23.2 million.

Chairman and chief executive Sir David McMurtry explained that growth in all the company's geographical market areas had prompted the rise in profits and turnover.

In a statement to shareholders he said: "The group benefited during the period from strong market growth in our major markets, especially Japan, Germany and the USA and in our newer markets of Eastern Europe and Russia.

"The improvement by product lines was particularly marked in digitising, machine tools and encoders.

"Our worldwide marketing infrastructure continues to be strengthened, with new offices being established in India and Russia and our staff in Nagoya, Japan, are due to move into larger offices in the next six months."

The company spent £12.3 million on research, development and associated engineering costs in the period, with a number of new product launches planned for the new 12 months.

There has also been large investment in the Stroud district, with 100,000 sq ft of factory and office space at Stonehouse bought for £5 million to complement the existing sites at Wotton and Woodchester.

Added Sir David: "This facility increases the group's manufacturing capability and will accommodate a new anodising plant, the transfer of our manufacturing equipment from New Mills, the company's raw material metal stores and the finishing processes for manufactured components.

"Substantial investment in additional manufacturing equipment, including machine tools, has also been made."

Total capital expenditure during this period amounted to £10.4 million - a rise of £300,000 on the previous year.

Sir David concluded: "The group continues to depend on the introduction of new products and the growth of the markets in which we operate. At present, markets are buoyant and the outlook favourable.

"Although the group only has short order book visibility, it has taken steps, including the build up of finished stock levels, to meet the increasing demand. We remain very confident of the group's longer term future."