Renishaw reports record sales and profits
Wotton-Under-Edge engineering company Renishaw this week announced record sales and the creation of 100 new jobs.
Swimming against the tide of the double dip recession, total Group revenue for the year was £331.9m, 15 per cent ahead of the £288.7m for last year.
All geographic areas saw good progress, with growth of 18 per cent in the Americas (revenue of £76.8m), 14 per cent in the Far East (£130.2m), 12 per cent in Europe (£95.7m) and 28 per cent in the UK (£18.9m) benefitting from a full year’s trading from acquisitions.
In the Far East the company saw a strong recovery in the final quarter of the year, principally due to revenue from China.
Group profit before tax for the year was £86.0m, compared with £80.4m last year (excluding a £1.7m exceptional item), an increase of 7 per cent. Adjusted earnings per share were 95.6p, an increase of 8 per cent over last year’s adjusted earnings per share of 88.5p. Reported earnings per share for the year were 95.6p (2011 90.8p).
In his official report, Renishaw Chairman Sir David McMurtry said: “Revenue from our metrology business was extremely strong in the last quarter of the year, resulting in revenue for the full year of £305.8m, compared with £267.0m last year, an increase of 15 per cent. Operating profit was £91.8m, compared with £87.7m in 2011.
“Revenue from our healthcare business for the year was £26.1m, compared with £21.7m last year, an increase of 20 per cent. Spectroscopy sales were at a record level, driven by an increasing range of applications in nanotechnology, advanced materials and life sciences, and there was also growth in the dental and neurological product lines.
“The Group continues to invest for long-term growth and during the year has invested £30.3m (2011 £16.5m) on facilities, plant and machinery and information technology capacity to provide the platform to accommodate growth expectations.
“Net cash balances at 30th June 2012 were £21.1m, compared with £23.7m in 2011. In addition, there is an escrow account amounting to £11.5m (30th June 2011 £10.8m) relating to the provision of security to the Company’s defined benefit pension scheme. The Group has also financed an increase of £23.1m in working capital, primarily trade receivables resulting from exceptionally strong revenue in the final quarter.
“David Snowden and Terry Garthwaite have each completed nine years on the Board and will not be seeking re-election at the AGM on 18th October 2012. The Board is very grateful for their considerable contributions to the Group.
“The Board is pleased that Dr David Grant has joined the Board with effect from 25th April 2012 and further appointments will be made in due course. Resolutions to re-elect all continuing directors will be put to the AGM.
“The directors thank the Group’s employees for their continuing support and significant contribution during this successful year. Headcount at the end of June 2012 was 2,904, an increase of 229 during the year.
“There are currently 182 staff vacancies in the Group, of which 118 are in the UK, and in common with other UK engineering companies, Renishaw is continuing to experience difficulty in recruiting high calibre engineers.
“The Group has again received a number of awards during the year, including our 15th Queen’s Award, for Enterprise 2012 in the Innovations Category for the SP80 ultra-high accuracy analogue scanning probe.
“As expected the final quarter of the year saw an increase in revenue growth and was a record quarter for the Group, with revenue of £103.1m. Renishaw’s markets exhibit attractive, long-term structural growth drivers with continuing global investment in production systems and processes.
“The Group therefore continues to invest a significant amount in R&D, manufacturing, marketing and distribution capability with a number of initiatives underway. Although the world economic outlook is uncertain, the Board remains optimistic regarding the Group’s own future and prospects and expects that 2013 will be another year of progress for Renishaw.
“A final dividend of 28.2 pence per share will be paid on 22nd October 2012 to shareholders on the register on 21st September 2012.”