Renishaw reports record revenue as it invests in growth

Renishaw claimed record revenue of £536.8m in its full-year results on Thursday, with underlying growth of 14% during the year.

The FTSE 250 engineering firm said there was “strong growth” in its encoder, measurement and automation, calibration and coordinate measuring machine product lines in its metrology business during the 12 months to 30 June, along with revenue growth in all of its health care product lines.

“We report an adjusted profit before tax of £109.1m and a statutory profit before tax of £117.1m, an increase of 25% on an adjusted basis,” said chairman Sir David McMurtry.

“Our total shareholder return during the year was 67%, ranking Renishaw in the top 25 in both the FTSE250 and FTSE350.”

It made capital expenditure of £42.6m during the period, which the board said was providing for future growth.

Renishaw’s headcount increased by 244 during the year, including the addition of 91 graduates and apprentices.

Its balance sheet was said to be “strong” with cash of £51.9m, compared to £21.3m at the beginning of the year.

“Renishaw is a long term business and we remain committed to strategic investments and R&D,” McMurtry said.

“In addition, over the past year, we have focused on underperforming business areas resulting in our discontinuing the activities of Renishaw Diagnostics Limited and the spatial measurement business.

“In spite of the potential headwinds brought about by the uncertainty of Brexit, we remain confident of future growth due to our innovative product base, extensive global sales and marketing presence, and relevance to high value manufacturing.”

The company’s board confirmed an 8.3% rise in the dividend to 52p for the year, after declaring a final dividend of 39.5p per share.

“The group is in a strong financial position and continues to invest in the development of new products and applications, along with targeted investment in production, and sales and marketing facilities around the world,” McMurtry explained.

“We have experienced strong growth in 2017 and whilst noting ongoing uncertainty surrounding Brexit and currency exchange rate volatility, your directors remain confident in the long-term prospects for the group and at this early stage in the year anticipate growth in both revenue and profits in the current financial year.”