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Gloucestershire Business News

Profits before tax fall almost 30 per cent at Renishaw

The headline might make it look like a challenging year for Renishaw - and it was - but there is also cause for celebration at the world-wide engineering success story.

Adjusted profit before tax for the year to June 30 was £103.9 million (2018: £145.1m), a decrease of 28 per cent, and statutory profit before tax decreased by 29 per cent to £109.9m (2018: £155.2m).

Revenue was down from £611.5m in 2018 to £574m, "largely as a result of a slowdown in demand for encoder and machine tool products in the APAC region".

But as we said, there were reason to be cheerful to. Metrology revenue also benefitted from "strong growth" in the Wotton-under-Edge headquartered firm's additive manufacturing product line and "good growth in our measurement and automation line (Equator gauging systems) and fixturing line".

There figures also represented an increased ccapital expenditure of £56.8m (2018: £34.9m) "providing for future growth" and underlined its commitment to the future - most notably in its headcount.

Staff numbers rose to 179, with 119 graduates and apprentices joining during the year.

While revenues decreased in APAC (Asia Pacific), by 17 per cent, there was growth in EMEA (Europe, the Middle East and Africa) of one per cent, the Americans of five per cent and the UK (which saw 11 per cent growth).

Sir David McMurtry (pictured), chairman and co-founder of the business, which now employs an estimated 5,000 staff worldwide, said: "We achieved a turnover for the year of £574.0m (2018: £611.5m) with a decrease in revenue of seven per cent at constant exchange rates*, against a backdrop of challenging economic conditions.

"Following the appointment of Will Lee as chief executive last year, I have been delighted to see his progress and strong leadership during the year. He is driving change in key areas of the business, including a focus on the skills development of our people, to continue to improve productivity.

Innovation drives our business, from the generation of new technologies to new manufacturing processes."

"I have enjoyed the opportunity to focus on Group innovation and product strategy, supporting our talented engineering teams. This has included our industrial metrology and additive manufacturing technologies, where there are exciting opportunities for future growth."

Summary

• Revenue of £574.0m (2018: £611.5m), a decrease of seven per cent at constant exchange rates.

• Growth in the Americas and EMEA regions; weakness in the APAC region (19 per cent decrease at constant exchange rates).

• Metrology revenue decreased by seven per cent to £532.9m, largely as a result of a slowdown in demand for encoder and machine tool products in the APAC region.

• Metrology revenue benefitted from strong growth in our additive manufacturing product line and good growth in our measurement and automation line (Equator gauging systems) and fixturing line.

• Healthcare revenue increased by 15 per cent, with strong growth in our spectroscopy and medical dental product lines giving rise to adjusted operating profits of £3.1m (2018: £0.3m).

• Adjusted profit before tax of £103.9m (2018: £145.1m), a decrease of 28 per cent.

• Statutory profit before tax decreased by 29 per cent to £109.9m (2018: £155.2m).

• Headcount increase of 179, with 119 graduates and apprentices joining during the year.

• Capital expenditure of £56.8m (2018: £34.9m), providing for future growth

• Strategy of focusing more on end-user solutions continued to drive investment in new facilities for demonstration, training and service; major property investments in Brazil, Japan and The Netherlands.

• Strong balance sheet, with end of year cash of £106.8m, compared with £103.8m last year.

• Recommended final dividend of 46.0p per share; total dividends for the year unchanged over last year at 60.0p (2018: 60.0p).

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