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Gloucestershire Business News

Future looking strong for Renishaw

Gloucestershire-based Renishaw plc saw revenue increase 21 per cent in the nine months to March 31.

The global provider of manufacturing technologies, analytical instruments and medical devices, headquartered at Wotton-under-Edge, announced that revenue for the period was £492.4m, compared to £407.4m for the corresponding period last year.

Adjusted profit before tax for the nine months to 31 March 2022 amounted to £124.0m compared with £84.4m last year and the statutory profit before tax amounted to £120.2m (2021: £106.3m).

The company said that in the wake of the Ukraine crisis, it was in the process of ceasing its trading operations with Russia.

A company statement said: "In our manufacturing technologies business, revenue for the first nine months was £467.4m, compared with £382.1m last year, with growth in all our product lines.

"Strong demand for our encoder product lines has largely been driven by increased investments in industrial automation and the semiconductor and electronics capital equipment markets.

"We also experienced good growth in demand for our machine tool and co-ordinate measuring machine product lines, where we have benefited from a recovery in investments in metal cutting machinery and the need to measure the outputs from those processes.

"Revenue from our analytical instruments and medical devices business for the first nine months was £25.0m, compared with £25.3m last year.

"Our extensive in-house manufacturing operations, our proactive inventory management and our continual assessment of alternative components has allowed us to mitigate continued supply chain constraints, arising particularly due to the global shortage of electronic components."

Renishaw said there had been a modest increase in group headcount in the third quarter, from 4,975 at 31 December 2021 to 5,004 at 31 March 2022.

The company said it was continuing to monitor the impact of COVID-19 on its people and our business and was closely monitoring the current lockdowns in China. "This uncertain position makes trading levels in China in the remainder of this financial year difficult to predict," it said.

Regarding the Ukraine crisis, Renishaw said: "Following the Russian invasion of Ukraine in February 2022, we immediately stopped the supply of goods from the Renishaw Group to Renishaw Russia and we are now in the process of ceasing our trading operations in Russia.

"Typically, combined sales to Russia and Belarus have represented around 1 per cent of total group revenue. In the third quarter, £2.0m of impairments were recorded for our assets in Russia and we do not anticipate any further significant costs or impairments."

The outlook looks strong for Renishaw with strong demand for its product lines and a strong order book.

"Mindful of global uncertainties, we anticipate that revenue for the full year will be between £655m and £675m, and adjusted profit before tax will be between £155m and £170m."

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