Engineering group Renishaw seems to have a communication problem.
Its shares have slumped nearly 3% after it reported a 5% fall in full year profits to £81.5m, despite saying less than three months ago that its performance was expected to be flat on the previous year.
So is the company keen to improve how it gets its message across to investors? Well alongside the disappointing update, it said:
During the year the board has reviewed its policy on communications with shareholders and the analyst and investor community. The board will provide all shareholders with information at the same time, in the same forum or medium, and ensure that the level and quality of information provided is significantly enhanced.
As a consequence, no private meetings will be held by directors with investors, potential investors or analysts. However, shareholder meetings with the chairman, the senior independent director and/or any other non-executive director may be arranged where a shareholder wishes to communicate their views.
Analyst Michael Blogg at Investec was not impressed:
For a company which is often hard to 'read', a withdrawal from one-to-one meetings is unhelpful. We believe that seeing the group's operations, products and key people is an important part of the process of gaining comfort in a business where the cost structure amplifies any volatility in end markets. We believe that this policy, taken at face value, will do a disservice to the company and its external shareholders.
On the figures he said:
Renishaw missed its guidance of 'profits broadly in line with 2012' by around £5m, due to fourth quarter revenue being down 12% year on year and costs rising steadily with recruitment.
In the market Renishaw is down 42p at £15.25.
