Renishaw Q1 pre-tax profits surge on improved revenues

Engineering company Renishaw said on Thursday that group revenues and profits had grown in the first quarter of its current trading year thanks to improving global macroeconomic conditions over the last twelve months.

Renishaw said group revenues for the three months ended 30 September came to £157.8m, up 35% when compared to the £116.9m recorded at the corresponding period last year, driven by "strong revenue growth" in all its trading regions.

In its manufacturing technologies business revenues grew 34% to £148.5m, with the strong growth largely driven by demand from the semiconductor and electronics markets, while in Renishaw's analytical instruments and medical devices business revenues were up 63% year-on-year at £9.3m.

As a result, adjusted pre-tax profits surged 128% to £41.7m and statutory pre-tax profits jumped 39% to £39.3m.

Looking forward, Renishaw said the 2022 financial year had started with "a strong first quarter" and noted that it currently had a record order book.

"We expect demand from the semiconductor and electronics sectors to remain strong and that there will continue to be a recovery in the machine tool and co-ordinate measuring machine markets," said Renishaw.

"The board continues to be confident in our long-term prospects, due to our strong financial position, the high quality of our people, our innovative product pipeline, extensive global sales and marketing presence and relevance to high-value manufacturing."

As of 0820 BST, Renishaw shares were up 6.68% to 4,950.0p.