Cutting costs helps Renishaw increase profits
By Rob Freeman | 22nd October 2020
Renishaw has posted increased profits for the first quarter of the final year after reducing costs.
The precision engineering firm, based near Wotton-under-Edge, revealed an adjusted profit before tax for the three months to September 30 of £18.3million - up from £4.3million.
A company statement said the figure had been helped by actions taken last year to reduce the group's operating cost base, as well as £2.3million from global job retention grants.
Revenue for the group across the first quarter reached £116.9million, down from £124.6million for the same three months in 2019.
The bulk of the revenue came from the company's metrology business which totalled £110.2million, down from £119.7million a year ago.
Revenue in the healthcare business rose from £4.9million to £5.7million.
While increased demand for optical and laser encoder products drove growth in the APAC (Asia Pacific) region, the ongoing coronavirus pandemic and uncertainty in the aerospace and automotive industries hit revenue in the rest of the world.
A company statement said: "The group is in a strong financial position and we continue to invest in the development of new products and applications, along with targeted investment in production, and sales and marketing facilities around the world.
"Given the continuing uncertain macroeconomic backdrop, including the pandemic, we continue to expect challenging market conditions, particularly in the aerospace and automotive sectors."
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