REG - Renishaw PLC - Trading Statement

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RNS Number : 7689H  Renishaw PLC  08 May 2025

Renishaw plc
Trading update
8 May 2025

 

Steady progress in Q3 with performance in line with expectations

Renishaw plc, the global provider of manufacturing technologies, analytical
instruments and medical devices, publishes the following trading update for
the nine months ended 31 March 2025. It contains unaudited information that
covers the first nine months of the financial year.

 

Q3 trading activity

 

                                             3 months to 31 March 2025  3 months to 31 December 2024  3 months to 30 September 2024

 Manufacturing technologies                  £171.4m                    £155.1m                       £167.5m
 Analytical instruments and medical devices  £9.3m                      £12.4m                        £6.4m
 Total revenue                               £180.7m                    £167.5m                       £173.9m

 Adjusted* profit before tax                 30.0                       23.5                          34.0
 Statutory profit before tax                 28.1                       23.5                          34.0

 

Revenue in the third quarter was £180.7m, a 5% year-on-year increase and 6%
higher than the average for the first two quarters of FY2025, with solid order
intake during the three-month period. We achieved good growth in sales of
machine tool probes to consumer electronics customers, whilst revenues from
co-ordinate measuring machines (CMMs) and gauging systems were steady as we
work through a substantial order book.  We also saw solid growth in demand
for position encoders from semiconductor equipment builders, continuing the
trend seen at the end of the first half and reported in our H1 results.

 

Adjusted profit before tax* in the third quarter was £30.0m, including the
previously guided impact of a 4% increase in employee pay from January.

 

Statutory profit before tax amounted to £28.1m, including £1.9m of
exceptional costs relating to our Neurological business.

 

 

9 months to 31 March 2025 trading activity

 

                                             9 months to 31 March 2025  9 months to 31 March 2024  Change  Change at constant currency*

 Manufacturing technologies                  £494.0m                    £473.6m                    +4%     +4%
 Analytical instruments and medical devices  £28.1m                     £29.3m                     -4%     -6%
 Total revenue                               £522.1m                    £502.9m                    +4%     +3%

 Adjusted(*) profit before tax               £87.5m                     £86.8m                     +1%     -
 Statutory profit before tax                 £85.6m                     £86.8m                     -1%     -

 

Revenue for the nine-month period was £522.1m (FY2024: £502.9m),
representing a 4% year-on-year increase at reported exchange rates.  Revenue
at constant exchange rates* was 3% higher than the previous year, including
growth of 6% in APAC, 1% growth in EMEA, and a 1% reduction in the Americas.

 

Adjusted profit before tax for the nine-month period was £87.5m (FY2024:
£86.8m), amounting to 17% of revenue (FY2024: 17%).

 

The Group's balance sheet remains strong with cash, cash equivalents and bank
deposit balances of £259.8m at 31 March 2025 (30 June 2024: £217.8m).

 

 

Update on Neurological business

 

The Board has taken the decision to close the loss-making drug delivery aspect
of our Neurological business, which will lead to an annual increase in Group
operating profit of c. £3m thereafter. Exceptional closure costs of £1.9m
have been recognised in the third quarter, with an additional c. £1m expected
to be incurred over the next six months. Renishaw Neuro Solutions Ltd
continues to pursue its neurosurgery activities (robot sales, servicing and
associated products) whilst the Group seeks a new owner for the business.

 

 

Factors affecting the business in Q4

 

Renishaw is impacted by tariffs introduced by the Trump administration. The
USA represents approximately 20% of our global revenues and our factories are
based in the UK, Ireland and India.

 

While there is ongoing uncertainty around policy in the medium term, under the
current regime our products imported into the USA are either impacted by
aluminium and steel tariffs (based on the mass of their material content) or
subject to the 'reciprocal' tariff regime.  Where required, we are
introducing a surcharge to pass on the impact of these additional costs. We
continue to assess the potential global impacts of these tariffs on an ongoing
basis.

 

As previously communicated, the UK employer NI changes will increase labour
costs from April 2025, with the fourth quarter of FY2025 to be impacted by
£1m and £4m added to our annual costs.

 

 

 

Outlook

 

We have continued to deliver steady growth in mixed market conditions, with
improving demand from semiconductor equipment builders throughout the year and
a recent rise in machine tool probing sales. To support our growth strategy,
we continue to focus on productivity, managing our portfolio of businesses and
making targeted investments in our people, our production facilities, and our
new product pipeline. We have an exciting range of new products coming to
market in the next few months that will help to drive growth in the years
ahead.

 

We enter the final quarter of the year with good momentum, but we are mindful
of the volatile economic backdrop and its potential to impact our customers'
investment decisions. We are therefore continuing to focus on pricing strategy
and cost control. In our interim statement, released on 13 February 2025, we
communicated that we expected full year revenue to be in the range of £695m
to £735m and adjusted profit before tax to be in the range of £105m to
£135m. We now expect revenue to be in the range of £700m to £720m and
adjusted profit before tax to be in the range of £109m to £127m.

 

We are holding our annual Capital Markets Day on 17 June 2025 at our recently
expanded Miskin manufacturing facility. Further details, including how to
register, can be found at
www.renishaw.com/en/capital-markets-day-tuesday-17th-june-2025--49674
(https://www.renishaw.com/en/capital-markets-day-tuesday-17th-june-2025--49674)
.

 

 

 Will Lee           Allen Roberts
 Chief Executive    Group Finance Director

 8 May 2025

 Renishaw plc
 Registered office  New Mills, Wotton-under-Edge, Gloucestershire, GL12 8JR
 Registered number  01106260
 Email address      communications@renishaw.com
 Website            www.renishaw.com

 

 

 

* In accordance with Renishaw's Alternative Performance Measures (APMs) policy
and ESMA Guidelines on Alternative Performance Measures (2015), this section
defines non-IFRS measures that we believe give readers additional useful and
comparable views of our underlying performance. APMs included in this
statement are: Adjusted profit before tax and Revenue at constant exchange
rates.

 

Adjusted profit before tax

The adjustment to statutory profit relates to the restructuring costs incurred
to date due to a recent decision to close the drug delivery aspect of
Renishaw's Neurological business. The restructuring costs to date relate to
asset impairments and inventory provisioning. The restructuring costs have
been excluded from the adjusted measure on the basis that they do not
frequently occur. The Board deems that the adjusted profit before tax also
represents a useful measure of performance of the Group. The following table
reconciles statutory profit before tax to adjusted profit before tax.

 

 £'m                          9 months to 31 March 2025  9 months to 31 March 2024
                              £'m                        £'m

 Statutory profit before tax  85.6                       86.8
 Restructuring costs          1.9                        -
 Adjusted profit before tax   87.5                       86.8

 

Revenue at constant exchange rates

Revenue at constant exchange rates is defined as revenue recalculated using
the same rates as were applicable to the previous year and excluding forward
contract gains and losses.

 

 £'m                                                     9 months to 31 March 2025  9 months to 31 March 2024
                                                         £'m                        £'m

 Statutory revenue as reported                           522.1                      502.9
 Adjustment for forward contract (gains)/losses          (15.2)                     2.7
 Adjustment to restate at previous year exchange rates   14.0                       -
 Revenue at constant exchange rates                      520.9                      505.6
 Year-on-year revenue growth at constant exchange rates  3%                         -

 

 

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