Renishaw (RSW)

Sector:

Electronic and Electrical Equipment

Index:

FTSE 250

4,015.00p
   
  • Change Today:
      30.00p
  • 52 Week High: 4,370.00p
  • 52 Week Low: 2,950.00p
  • Currency: UK Pounds
  • Shares Issued: 72.79m
  • Volume: 11,180
  • Market Cap: £2,922.46m
  • RiskGrade: 147

Renishaw Q1 profit rises on reduced costs

By Michele Maatouk

Date: Thursday 22 Oct 2020

LONDON (ShareCast) - (Sharecast News) - Renishaw posted a rise in first-quarter profit on Thursday despite a decline in revenue, thanks to reduced operating costs and the job retention grant.
In the three months to the end of September, adjusted pre-tax profit rose 326% to £18.3m, while statutory pre-tax profit was up 453% to £28.2m. Renishaw said adjusted profit had benefited from a number of actions taken last year to reduce the company's operating cost base and also included the global job retention grant income totalling £2.3m.

Overall revenue fell 6% from the same period last year to £116.9m, with revenue in the metrology segment down 8% to £110.2m while the healthcare division saw a 16% increase to £5.7m.

In the metrology business, there was revenue growth in the APAC region, where the company has seen increased demand for its optical and laser encoder product lines due to a recovery in the semiconductor market. Revenue in EMEA and the Americas fell, however, due to ongoing uncertainty caused by the pandemic and weaker demand, particularly in the aerospace and automotive sectors.

In the healthcare segment, there was increased demand for both Renishaw's spectroscopy and neurological product lines.

"The group is in a strong financial position and we continue to invest in the development of new products and applications, along with targeted investment in production, and sales and marketing facilities around the world," it said. "Given the continuing uncertain macroeconomic backdrop, including the pandemic, we continue to expect challenging market conditions, particularly in the aerospace and automotive sectors."

At 1225 BST, the shares were up 1.2% at 5,780p.

Broker Peel Hunt said: "We see this as an encouraging update that puts the group running well ahead of our FY assumptions - particularly at the operating margin level - however, we will leave our numbers unchanged for now as we do not know whether some discretionary costs will come back in or whether continuing investment in the group will suppress margins as the year progresses.

"We await more detail at the interims on 4 February, but if Q2, Q3 and Q4 continue at Q1's level the FY will come in at £72m versus PHe £48.6m. Despite the potential beat we do not think it is enough to warrant the rating. Even if it makes that number, the implied FY21E PE is still 65x."

Peel Hunt rates Renishaw at 'hold'.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Renishaw Market Data

Currency UK Pounds
Share Price 4,015.00p
Change Today 30.00p
% Change 0.75 %
52 Week High 4,370.00p
52 Week Low 2,950.00p
Volume 11,180
Shares Issued 72.79m
Market Cap £2,922.46m
RiskGrade 147

Renishaw Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
78.82% below the market average78.82% below the market average78.82% below the market average78.82% below the market average78.82% below the market average
77.78% below the sector average77.78% below the sector average77.78% below the sector average77.78% below the sector average77.78% below the sector average
Price Trend
33.91% above the market average33.91% above the market average33.91% above the market average33.91% above the market average33.91% above the market average
43.59% above the sector average43.59% above the sector average43.59% above the sector average43.59% above the sector average43.59% above the sector average
Income
82.35% below the market average82.35% below the market average82.35% below the market average82.35% below the market average82.35% below the market average
69.23% below the sector average69.23% below the sector average69.23% below the sector average69.23% below the sector average69.23% below the sector average
Growth
2% below the market average2% below the market average2% below the market average2% below the market average2% below the market average
37.14% above the sector average37.14% above the sector average37.14% above the sector average37.14% above the sector average37.14% above the sector average

What The Brokers Say

Strong Buy 2
Buy 0
Neutral 3
Sell 1
Strong Sell 1
Total 7
neutral
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Renishaw Dividends

  Latest Previous
  Interim Final
Ex-Div 07-Mar-24 02-Nov-23
Paid 09-Apr-24 07-Dec-23
Amount 16.80p 59.40p

Trades for 17-Jun-2024

Time Volume / Share Price
14:26 14 @ 4,020.00p
14:26 14 @ 4,020.00p
14:07 12 @ 4,025.17p
14:04 5 @ 4,020.00p
14:04 5 @ 4,020.00p

Renishaw Key Personnel

CEO William Lee

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