REG - Renishaw PLC - Trading Statement

RenishawAnnouncement

26/10/2023 07:00

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RNS Number : 3073R  Renishaw PLC  26 October 2023

Renishaw plc
Trading update
26 October 2023

 

 

Steady recent performance in challenging market conditions

Renishaw plc, the global provider of manufacturing technologies, analytical
instruments and medical devices, publishes this trading update for the three
months ended 30 September 2023. It contains unaudited information that covers
the first quarter of the financial year and the period since.

 

Trading activity

 

                                             3 months to 30 September 2023  3 months to 30 September 2022  Change

 Manufacturing technologies                  £156.8m                        £172.8m                        -9%
 Analytical instruments and medical devices  £7.7m                          £7.1m                          +8%
 Total revenue                               £164.5m                        £179.9m                        -9%
 Total revenue at FY2023 exchange rates      £169.6m                        £179.9m                        -6%

 Adjusted(*) profit before tax               £28.0m                         £40.0m                         -30%
 Statutory profit before tax                 £28.0m                         £38.6m                         -27%

 

Revenue was £164.5m, compared to £179.9m for the corresponding period last
year, representing a 9% reduction and a 6% reduction at constant currency. All
regions experienced reduced demand compared to Q1 FY2023. Whilst there was
modest growth for the Industrial Metrology area of our business, revenues for
our Position Measurement products were substantially below a strong period
last year. However, compared to Q4 FY2023, revenue was 1% lower at constant
currency, with no significant changes to market conditions.

 

In our Manufacturing technologies business, revenue amounted to £156.8m,
compared to £172.8m last year. Revenue for our Analytical instruments and
medical devices business was £7.7m, an increase of 8% compared with £7.1m
last year.

 

Adjusted profit before tax for the first quarter amounted to £28.0m (FY2023:
£40.0m) and was 4% lower than the final quarter of the previous financial
year. Statutory profit before tax amounted to £28.0m (FY2023: £38.6m).

 
Financial position

The Group balance sheet remains strong with net cash and cash equivalents and
bank deposit balances of £206.7m at 30 September 2023 (30 June 2023:
£206.4m).

 

Outlook

Trading conditions remain challenging due to subdued demand, most notably from
the semiconductor sector. We continue to see positive investment trends in
robotics, defence, low emission transportation and additive manufacturing.

 

We continue to carefully manage costs, implement targeted price rises and
focus on productivity improvements.

 

Our investments in product innovation, infrastructure, and people leave us
well-positioned to benefit from a recovery in our markets. We are confident in
our strategy to deliver sustainable long-term growth.

The results for the half year ending 31 December 2023 will be released on 6
February 2024.

 

 Will Lee           Allen Roberts
 Chief Executive    Group Finance Director

 26 October 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

 

 

 

 

* 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 also
represents a useful measure of performance of the Group. All previously
ineffective contracts matured in FY2023 and no further contracts have been
designated as ineffective in FY2024. The following table reconciles statutory
profit before tax to adjusted profit before tax:

 

 £'m                                                                                   3 months to 30 September 2023  3 months to 30 September 2022
                                                                                       £'000                          £'000

 Statutory profit before tax                                                           28.0                           38.6

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

 Adjusted profit before tax                                                            28.0                           40.0

 

 

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