Renishaw FY jumps on demand for AI processing

Specialist engineer Renishaw on Wednesday posted a 27% rise in annual profit driven by accelerating demand in several markets, including the semiconductor and aerospace and defence sectors.

Pre-tax profit for the 12 months to June 30 came in at £150m, while revenue rose 14% to £816m. Renishaw said the current year had started strongly on increased demand for semiconductor manufacturing equipment.

The company proposed a final dividend of 65.2p per share, taking the full-year payout to 82p, up 5%, alongside a special interim dividend of 70p.

“We saw strong growth in our existing markets this year driven by one of the biggest trends shaping the world around us. The exponential growth in demand for AI processing has triggered unprecedented demand for semiconductors,” said chief executive Will Lee.

“Since our encoders are used across the semiconductor production process, this represents a sweet spot for Renishaw because it relies on increasing levels of precision and automation, and we have worked hard to win more customers that supply this market.”

“We continue to see rising competition, particularly in China, from rivals offering 'good enough' products at attractive prices. We are responding by developing strategies to compete in entry-level markets.”

Reporting by Frank Prenesti for Sharecast.com