Renishaw posts record results

Renishaw reported record annual revenues on Thursday, boosted by a recovery in its core markets, but warned of a weakening outlook.

The FTSE 250 engineering firm reported revenues of £671.1m for the year to 30 June, a 19% improvement on the previous year, and adjusted pre-tax profits of £163.7m, a 37% hike.

Renishaw said that both revenues and adjusted pre-tax profits were records, and had been achieved "against a backdrop of a global recovery in all our key markets".

Its core manufacturing technologies division saw revenues rise 20% to £634.6m, boosted in large part by "record" demand for encoders, which are used in semiconductor production. Analytical instruments and medical devices revenue rose 4% to £36.5m

Group pre-tax profits were £145.6m, compared to £139.4m.

Will Lee, chief executive, said: "Last year I spoke about the strong position we were in to take advantage of the many opportunities presented by the global recovery in our markets. We’ve capitalised on those opportunities this year, delivering the best set of financial results in our history."

Lee said the firm had made a "positive start" to the current year, with a "strong" order book. But he also added a note of caution, adding: "We have, however, recently 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."

David McMurty, chair, said: "Our performance has been built on years of strategic focus. We’ve developed the innovative products required to meet the challenges faced by manufacturers in growing markets, while ensuring we have the global infrastructure and skilled people to deliver those opportunities.

"While there continues to be some global uncertainties, due to the geopolitical environment and rising costs for consumers and manufacturers, the last two years have demonstrated the great resilience of our business."

As at 0845 BST, shares in Renishaw were off 1% at 3,469.2p.