Engineering firm Renishaw saw its stock soar this morning after an upbeat trading statement.

The FTSE 250 firm saw revenues for the six months to 31 December 2011 rise 11 per cent to £147.1 million, but pre-tax profits slumped 11 per cent to £31.2 million.

The drop in profits is attributable to the company’s continuing investment in extra staff and infrastructure to support growth.

Chairman and chief executive of Renishaw, David McMurtry, commented, ‘The outlook for continuing global investment for production systems in automotive, civil aviation, agriculture and energy (including oil, gas and renewables) looks increasingly favourable.

‘We therefore remain focused on positioning the group for further growth and view the future with great confidence.’

Investors reacted strongly to the positive outlook, with shares currently up 18.01 per cent at 1,363p at 11.45am, still some way from the high of 1,886p in July 2011.

Despite the prevailing headwinds in Europe, Renishaw achieved 25 per cent in the region, along with 23 per cent growth in the Americas, although this was offset partially by a 17 per cent drop in the Far East.

The company saw its largest revenue growth in its healthcare division, up 27 per cent to £11.2 million, although its operating loss was £6 million after extensive restructuring during 2011.

The majority of revenue still comes from its metrology division, which saw 10 per cent revenue growth but a slight drop in profits to £35.7 million.

Renishaw’s board will pay an interim dividend of 10.3p per share on 10 April 2012.