Renishaw "well placed" as profits treble
By Rob Freeman | 4th February 2021
Renishaw said it was in a strong position for the post-pandemic recovery after tripling profit before tax over the last half of 2020 - despite a drop in revenue.
The precision engineering group, based near Wotton-under-Edge, reported profit before tax of £43.4million in an interim report for the six months to December 31.
That compares to £14.3million for the same period the year before and close to the £48.6million for the full year to June 30.
Revenue for the six months dropped by £4.3million to £255.1million with the company's Fit for the Future strategy, introduced the previous year, delivering significant cost savings.
Profits were also helped by pandemic restrictions reducing spending on travel and exhibitions while capital expenditure was considerably lower at £4.8million - down from £28.4million the previous year.
Revenue in the the Metrology arm of the company dipped by two per cent to £235.6million, although adjusted operating profits rose from £17.4million to £41.2million, - helped by growth in optical and laser encoder lines.
And the Healthcare division saw a £1.5million loss for the last six months of 2019 turn into an adjusted operating profit of £2.2million as revenue grew by 10 per cent to £19.5m.
A company statement with the report said: "The board remains confident in the long-term prospects for the group due to its strong financial position, the high quality of our people, our innovative product pipeline, extensive global sales and marketing presence and relevance to high-value manufacturing.
"While the trading environment remains uncertain as a result of the pandemic, we currently have a strong order book and we are well placed to take advantage of the opportunities presented by any recovery in the global economy."
The board's estimate for full-year revenue is £515-545million with adjusted profit before tax forecast between £85-105million.
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