Renishaw Plc reports Revenue Decline and Profit Reduction

Renishaw plc (LON:RSW) has announced its interim report 2024 – for the six months ended 31 December 2023.

·      Revenue 5% lower at £330.5m:

•      Manufacturing technologies revenue lower by 6%, with solid growth in Industrial Metrology offset by continued weak demand for position encoders for semiconductor manufacturing equipment.

•       Analytical instruments and medical devices revenue up 16%, with strong growth in Spectroscopy products.

•      Group revenue lower by 2% at constant currency; APAC +6%, EMEA -6% and Americas -13%.

•      Q2 similar to Q1 this year and Q2 FY2023; stable order book.

·      Adjusted* profit before tax of £56.5m (H1 FY2023 £73.5m):

•      Represents 17% of revenue (21% last year).

•      3% reduction in gross margin before engineering costs: targeted price rises, offset by adverse currency impact on revenue, employee pay inflation, and lower production overhead absorption due to planned inventory reductions.

•      Cost control in engineering, distribution and administration limiting year-on-year increases to 3%.

·      Statutory profit before tax of £56.5m (H1 FY2023: £77.8m).

·      Strong balance sheet with cash and cash equivalents and bank deposit balances of £178.3m, compared with £206.4m at 30 June 2023, with the £43.2m final dividend for FY2023 paid in H1.

•       Targeted reductions in inventory contribute to cash flow from operating activities increasing to £55.6m (H1 FY2023: £21.6m).

·      Interim dividend of 16.8p per share.

William Lee, Chief Executive, commented:

“We have achieved a solid performance in challenging market conditions, with growth from Industrial Metrology products in APAC being offset by continued weak demand from some key sectors, most notably semiconductor equipment. We expect an improvement in our trading performance in the second half of the financial year as market conditions improve, and as we continue to pursue a range of growth opportunities.  To support our through-cycle growth strategy, we are continuing to focus on productivity and to make targeted investments in our people, our production facilities, and our new product pipeline.”

* Note 12, ‘Alternative performance measures’, defines how adjusted profit before tax and adjusted earnings per share are calculated.

About Renishaw

We are a world leader in measuring and manufacturing systems. Our products give high accuracy and precision, gathering data to provide customers and end users with traceability and confidence in what they’re making. This technology also helps our customers to innovate their products and processes. We are guided by our purpose – Transforming Tomorrow Together. This means working with our customers to make the products, create the materials, and develop the therapies that are going to be needed for the future. Our vision is to innovate and transform the capabilities of our customers and end users through unparalleled levels of precision, productivity and practicality.

We are a global business, with customer-facing locations across our three sales regions; the Americas, EMEA, and APAC. Most of our R&D work takes place in the UK, with our largest manufacturing sites located in the UK, Ireland and India.

Results presentation and live Q&A session today

See below a video presentation of these results, presented by William Lee, Chief Executive, and Allen Roberts, Group Finance Director. There will be a live audio-only question and answer session with William and Allen at 10:30 GMT today. Details of how to register for and access this webcast are available at the following link:

https://www.renishaw.com/en/register-for-the-2024-interim-results-webcast–48539

Questions can be submitted during the live Q&A session using the webcast platform or in advance to [email protected] (please submit by 09:30 GMT).