Engineering group Renishaw expects a strong second-half performance on the back of increasing demand and the weak pound.

The update came as the specialist machine tool and measuring device maker reported an 11.8% rise in first half profits to £15.1 million. Shares were rose 12.5p, or 2%, to 657 pence.

The company, which has been recovering from a cyclical downturn dating back to 2001, said its first half performance had got better, with revenue increasing by 5% to £91.6 million, progress was particularly good in the Far East.

Within the product mix, there was above-average growth in laser and calibration and machine tool products, partly offset by lower revenue from spectroscopy and dental products.

The group said it expects further progress in the second half, boosted by resumed orders from a major Japanese customer and new products including the REVO measuring head and probe system. It said it was continuing to focus on its cost base and operating margins.