REG - Renishaw PLC - Trading Statement

RenishawAnnouncement

27/10/2022 07:01

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RNS Number : 2423E  Renishaw PLC  27 October 2022

Renishaw plc
Trading update
27 October 2022

 

Renishaw plc, the global provider of manufacturing technologies, analytical
instruments and medical devices, publishes this trading update for the three
months ended 30 September 2022. It contains unaudited information that covers
the first quarter of the financial year and the period since.

 

Trading activity

 

                                             3 months to 30 September 2022  3 months to 30 September 2021(a)  Change

 Manufacturing technologies                  £172.8m                        £152.3m                           +13%
 Analytical instruments and medical devices  £7.1m                          £5.5m                             +29%
 Total revenue                               £179.9m                        £157.8m                           +14%

 Adjusted(b) profit before tax               £40.0m                         £41.7m                            -4%
 Statutory profit before tax                 £38.6m                         £39.3m                            -2%

 

Overall Group performance was in line with our expectations for the first
quarter of the year.

 

Revenue was £179.9m, compared to £157.8m for the corresponding period last
year, with revenue growth in all regions. This includes a £4.0m currency
benefit at constant exchange rates, net of hedging.

 

In our Manufacturing technologies business, revenue amounted to £172.8m,
compared to £152.3m last year, with strong growth in our core industrial
markets. In our Analytical instruments and medical devices business, revenue
was £7.1m, compared with £5.5m last year.

 

Adjusted profit before tax for the first quarter amounted to £40.0m (FY2022:
£41.7m) and is comparable with our profitability in the final quarter of the
previous financial year. The current year includes a net £1.0m gain relating
to currency. Statutory profit before tax amounted to £38.6m (FY2022:
£39.3m).

 
Financial position

The Group balance sheet remains strong with net cash and bank deposit balances
of £258.6m at 30 September 2022 (30 June 2022: £253.2m).

 

Outlook

We have made a positive start to the current year and our order book remains
strong. We have, as recently reported, seen a weakening in order intake from
the semiconductor and electronics sectors, and general market sentiment is
becoming more cautious. In light of this, we are managing costs carefully and
focusing on productivity.

 

Overall, we're confident in our strategy and the investments we're making in
people and infrastructure to deliver sustainable, long-term growth, and we
look forward to the year ahead.

 

The results for the half year ending 31 December 2022 will be released on 2
February 2023.

 Will Lee           Allen Roberts
 Chief Executive    Group Finance Director

 27 October 2022

 Renishaw plc
 Registered office  New Mills, Wotton-under-Edge, Gloucestershire, GL12 8JR
 Registered number  01106260
 Telephone number   +44 (0) 1453 524524
 Website            www.renishaw.com

 

 

 

 

 

 

(a) Results relating to sales of additive manufacturing machines to medical
and dental customers are no longer recognised in the Analytical instruments
and medical devices operating segment. Comparative figures have been
reclassified accordingly, with £3.8m reclassified from Analytical instruments
and medical devices to Manufacturing technologies in the 3 months to 30
September 2021.

 

(b) The adjustment to statutory profit relates to the accounting treatment of
certain forward currency contracts used as hedging instruments which do not
qualify for hedge accounting as they do not meet the hedge effectiveness
criteria set out in the International Accounting Standard IFRS 9 'Financial
Instruments'. The Board deems that the adjusted profit before tax better
reflects the underlying performance of the Group. The following table
reconciles statutory profit before tax to adjusted profit before tax:

 

 £'m                                                                                   3 months to 30 September 2022  3 months to 30 September 2021
                                                                                       £'000                          £'000

 Statutory profit before tax                                                           38.6                           39.3

 Fair value (gains)/losses on financial instruments not eligible for hedge accounting
   - reported in revenue                                                               (3.7)                          1.3
   - reported in (gains)/losses from the fair value of financial instruments           5.1                            1.1

 Adjusted profit before tax                                                            40.0                           41.7

 

 

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