Renishaw profits drop amid 'very challenging' economic conditions
FTSE 250 engineering company Renishaw posted a drop in full-year profit on Thursday as revenue fell amid "very challenging" economic conditions.
In the year to the end of June 2020, adjusted pre-tax profit fell 53% to £48.6m while statutory profit declined to £3.2m from £109.9m last year, with revenue down 11% to £510.2m.
Renishaw said revenue was lower in all regions, "with the challenging global macroeconomic conditions throughout the year and the Covid-19 pandemic impacting most product lines".
Revenue in the metrology segment was down 11% to £475.2m, largely due to trade tensions between the US and China, weaker demand in the machine tool sector and the impact of the pandemic. However, Renishaw said it experienced good growth in its position encoder product line due to a recovery in the semiconductor market.
In the healthcare division, revenue fell 15% to £35.0m as the coronavirus pandemic caused delays in orders, shipments, installations and postponements of elective surgery.
Chief executive Will Lee said: "We continue to invest in the development of new products and applications, along with targeted investment in production, and sales and marketing facilities around the world.
"Given the uncertain macroeconomic backdrop, including the pandemic and the risks posed by reduced freedom of global trade, we expect very challenging market conditions, particularly in the automotive and aerospace sectors."
At 1010 BST, the shares were down 10.6% at 4,730p.