Renishaw posts record full-year revenue, profits slide
By Josh White
Date: Thursday 12 Sep 2024
(Sharecast News) - Renishaw reported solid full-year strategic progress in its final results on Thursday, with revenue reaching record levels, although profits slid.
The FTSE 250 company posted a modest revenue increase of 0.4%, reaching a record £691.3m, supported by a strong performance in the final quarter.
However, adjusted profit before tax dropped 13% to £122.6m, impacted by currency fluctuations and rising employee costs.
Statutory profit before tax also fell, by 16% to £122.6m, while adjusted earnings per share decreased by 13% to 133.2p.
Key factors behind the revenue growth included robust sales in manufacturing technologies, with record figures for shop-floor gauging and coordinate measuring machine (CMM) inspection systems.
Renishaw also saw strong demand for multi-laser additive manufacturing systems, especially in the medical sector.
However, weaker demand from the semiconductor sector dampened overall growth in position measurement products, though the company noted sequential improvement over the four quarters.
In the analytical instruments and medical devices segment, revenue rose 7% to £43.2m, driven by record sales of spectroscopy products and growth in neurological devices.
Notably, sales of the neuromate® surgical robot used for diagnosing epilepsy increased.
Renishaw said its strategic focus for the year included growth in existing markets, increasing the value of its technology offerings, and expanding into new, high-growth areas.
The board said the launch of innovative products, such as the RMP24-micro wireless probe and the RenAM 500 Ultra additive manufacturing machine, underscored those efforts.
It also introduced a new metrology software, MODUS IM Gauge & Control, to enhance automation in process control.
In addition, Renishaw made significant progress on its environmental goals, including the completion of the first phase of an expansion at its Miskin facility, which was completed on time and under budget.
The firm also launched a new environmental, social, and governance (ESG) strategy as part of its commitment to reducing carbon emissions in line with its net zero targets.
Renishaw maintained its dividend at 76.2p per share, supported by a strong balance sheet with cash reserves of £217.8m.
Looking ahead, the company said it was aiming for high single-digit growth through a combination of innovation, market expansion, and operational efficiency.
"The start of the 2025 financial year has seen continuing improvement in demand for our encoder products from the semiconductor manufacturing sector, primarily in the Asia-Pacific region," said chief executive officer Will Lee.
"This, together with a range of growth opportunities that we are pursuing, especially for metrology and additive manufacturing systems, means that we are expecting to achieve solid revenue growth in the year ahead."
Lee said the company was continuing to focus on improving productivity in all areas.
"We expect these efforts, together with higher sales volumes, to drive our operating profit margin towards our target, although inflationary pressures, especially people costs, will affect the rate of improvement in the near term.
"The progress we've made against our three key strategic focus areas this year gives me confidence in our organic growth strategy, and we continue to invest for long-term success."
At 0827 BST, shares in Renishaw were up 1.31% at 3,343.39p.
Reporting by Josh White for Sharecast.com.
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