Engineer FKI left its full year guidance unchanged, sending its shares as much as 10 percent higher on Monday as it soothed investors' fears that its outlook may have worsened.
FKI acknowledged that its operating profits were adversely affected by higher commodity and foreign exchange costs in the six months to September 30.
But the Leicestershire based company said an expected strong order book, sales price hikes and a revamp of some its activities would keep the second half strong.
By 1222 GMT (1:22 p.m. British Time), FKI shares were up 5.3 percent at 95 pence, valuing the business at around 553 million pounds. They peaked at 99 1/2p, a gain of 10 percent on the day.
The trading performance of the group in the first half reflected order intake around 20 percent up on the corresponding period last year and revenue around 5 percent up, the company said in an update ahead of its interim results on November 30.
Although Merrill Lynch analyst Mark Toman said in a note that the first half performance looked mixed, he added: Overall, the statement seems to have allayed the markets worst fears about trading and the corresponding impact that would have on its balance sheet.