Renishaw PLC Trading Statement (3073R)
26 October 2023 - 5:00PM
UK Regulatory
TIDMRSW
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 3 months to Change
30 September 30 September
2023 2022
Manufacturing technologies GBP156.8m GBP172.8m -9%
--------------- --------------- -------
Analytical instruments and
medical devices GBP7.7m GBP7.1m +8%
--------------- --------------- -------
Total revenue GBP164.5m GBP179.9m -9%
--------------- --------------- -------
Total revenue at FY2023 exchange
rates GBP169.6m GBP179.9m -6%
--------------- --------------- -------
Adjusted(*) profit before
tax GBP28.0m GBP40.0m -30%
--------------- --------------- -------
Statutory profit before tax GBP28.0m GBP38.6m -27%
--------------- --------------- -------
Revenue was GBP164.5m, compared to GBP179.9m 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
GBP156.8m, compared to GBP172.8m last year. Revenue for our
Analytical instruments and medical devices business was GBP7.7m, an
increase of 8% compared with GBP7.1m last year.
Adjusted profit before tax for the first quarter amounted to
GBP28.0m (FY2023: GBP40.0m) and was 4% lower than the final quarter
of the previous financial year. Statutory profit before tax
amounted to GBP28.0m (FY2023: GBP38.6m).
Financial position
The Group balance sheet remains strong with net cash and cash
equivalents and bank deposit balances of GBP206.7m at 30 September
2023 (30 June 2023: GBP206.4m).
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:
GBP'm 3 months 3 months
to 30 September to 30 September
2023 2022
GBP'000 GBP'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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END
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