REG - Renishaw PLC - Trading Statement

RenishawAnnouncement

28/04/2023 07:00

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RNS Number : 7785X  Renishaw PLC  28 April 2023

Renishaw plc
Trading update
28 April 2023
 

 

 

Revenue growth achieved despite lower demand from the semiconductor and
electronics sectors.

 

Renishaw plc, the global provider of manufacturing technologies, analytical
instruments and medical devices, publishes this trading update for the nine
months ended 31 March 2023. It contains unaudited information that covers the
first nine months of the financial year and the period since.

 

 

Trading activity

 

                                             9 months to 31 March 2023  9 months to 31 March 2022  Change

 Manufacturing technologies                  £496.7m                    £467.4m                    6%
 Analytical instruments and medical devices  £25.3m                     £25.0m                     1%
 Total Revenue                               £522.0m                    £492.4m                    6%

 Adjusted* Profit before tax                 £111.8m                    £124.0m                    -10%
 Statutory Profit before tax                 £117.3m                    £120.2m                    -2%

 

Revenue for the nine months to 31 March 2023 was £522.0m, an increase of 6%
compared to £492.4m for the corresponding period last year.

 

In our Manufacturing technologies business, revenue for the first nine months
was £496.7m, compared with £467.4m last year. Strong systems sales have
contributed to growth in our industrial metrology and additive manufacturing
business. Our position measurement business has continued to see subdued
demand from the semiconductor and electronics sectors in the third quarter,
resulting in lower revenue this year compared to last year. Revenue from our
Analytical instruments and medical devices business for the first nine months
was £25.3m compared with £25.0m last year.

 

Adjusted profit before tax for the nine months to 31 March 2023 amounted to
£111.8m compared with £124.0m last year and the statutory profit before tax
amounted to £117.3m (FY2022: £120.2m). As previously reported, we have
invested in increased customer facing activities this year and operating cost
increases also reflect pay reviews undertaken in the last two years.

 

Financial position

 

The Group balance sheet remains strong with cash and cash equivalents and bank
deposits amounting to £227.8m (31 December 2022: £211.5m).

 

Outlook

 

We expect current market conditions to continue during the remainder of this
financial year. We continue to invest in innovative new products and
manufacturing capacity to support our growth objectives, whilst managing costs
carefully and focusing on productivity. We anticipate that revenue for the
full year will be between £680m and £700m, and adjusted profit before tax
will be between £135m and £150m.

 

The preliminary results for the year ending 30 June 2023 will be released on
14 September.

 

 Will Lee         Allen Roberts
 Chief Executive  Group Finance Director

 28 April 2023

 

 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

 

 

 

 

 

 

 

 

 

 

 

 

 

(*) Adjusted profit before tax

 

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'; and

-       third-party costs in the previous year relating to the formal
sale process ('FSP') concluded in July 2021.

 

The Board views the adjusted profit before tax as a useful measure to analyse
the underlying performance of the Group. The following table reconciles
statutory profit before tax to adjusted profit before tax:

 

                                                                                       9 months to 31 March 2023  9 months to 31 March 2022
                                                                                       £'m                        £'m

 Statutory profit before tax                                                           117.3                      120.2

 Third-party FSP costs                                                                 -                          (0.2)
 Fair value (gains)/losses on financial instruments not eligible for hedge accounting
   - reported in revenue                                                               (6.9)                      (0.1)
   - reported in (gains)/losses from the fair value of financial instruments           1.4                        4.1

 Adjusted profit before tax                                                            111.8                      124.0

 

 

 

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