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UPDATE 1-UK's Renishaw sees annual profit surge on chip sector demand, cost cuts

(Adds revenue outlook, shares, background)

March 26 (Reuters) - Engineering firm Renishaw Plc said on Friday it expects annual profit to more than double on strong demand from semiconductor and consumer electronics markets, and as it continues to cut costs. Shares in the FTSE-100 company were up 2.3% at 5,915 as of 1312 GMT.

Renishaw makes precision measurement equipment used in products ranging from jet engines to smartphones, and demand for electronic items has skyrocketed during the COVID-19 pandemic.

As part of a new strategy, the group has also been reducing costs over the past year with measures including resizing, restructuring and job cuts.

The company forecast an adjusted pre-tax profit between 105 million pounds ($144.56 million) and 125 million pounds for the financial year ending June 30. It reported a profit of 48.6 million pounds for the same period a year earlier.

Renishaw also said it expects full-year revenue in the range of 540 million-570 million pounds, up from 510.2 million pounds a year earlier.

The company earlier this month said it was looking for a buyer as it considers several options after its two founders, who together own about 53% of the firm, planned to sell their stakes.

$1 = 0.7264 pounds Reporting by Priyanshi Mandhan in Bengaluru; Editing by Ramakrishnan M.

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