Renishaw Share Discussion Threads

[staverly] 27/7/2011 07:59

ADVFN have apparently recently launched a personal messaging service (never tried it before) but thought we could give it a go

[apad] 27/7/2011 07:57

Sorry stav..
Don't understand "pm".
apad

[staverly] 27/7/2011 07:51

Apad - happy to pm you

[apad] 27/7/2011 07:17

Elec...
Yes, and all based on the same expertise born in RR so very long ago.
Profit is the byproduct of a decent technical company.
apad

[electronica] 27/7/2011 06:50

APAD

Not sure about the $2/3bn for Equator either - but it certainly does very significantly expand RSW's TAM (Total Available Market).

The same applies to the 3D printing stuff.

These 2 lines could easily fill up that Bosch plant within a couple of years.

Brilliant set of results - that are even a little ahead of the more optomistic of broker forecasts. Let's see what the market makes of them.

[apad] 27/7/2011 06:29

stav
"potential market is apparently $2/3 bn per annum"
Where does this come from?

Results:
PER about 20 and yield about 2% with £35m in the bank.
Looks quite cheap now!
apad

[staverly] 26/7/2011 19:18

Apad - Equator represents their first foray into a mass market and so if it really is a game changer (potential market is apparently $2/3 bn per annum) then shareholders really will be off to the races but we are imho at least 12m from ascertaining impact of their marketing ... initial enthusiasm is one thing, mass adoption somewhat harder. Equator aside, this is a blue sky situation as their other portfolio of metrology products (especially encoders) are finally and deservedly achieving broader appeal, especially in China. I won't wish you good luck for tomorrow as I do not suspect you will need it!

[apad] 26/7/2011 18:25

stav...
As I see it healthcare is simply a new market for metrology expertise. I also expect healthcare to continue losing money - it is the market take-up that is interesting to me. The S Wales decision was shocking (to me at least) - it suggests a long view that I don't understand.
Your semi-private observation supports my confidence in the management - run by techies for techies (BTW I'm a techie therefore biased).
I would be interested in more background on your Equator comment.
RSW is now approaching 10% of my portfolio, but I am not at all sure I can punish it for performing!
The devaluation of the pound made this a racing certainty a couple of years ago (after its survival) and I don't think the argument has lost steam.
However - a world slowdown will affect their main market.
Does anyone plan to go to the AGM?
apad

[staverly] 26/7/2011 16:37

Rampmeister: Thanks for your reply. I wouldn't be holding my breath re: healthcare performance as I expect the division to continue to lose money for a while yet. This is not important as it is a mere side show to their rampaging metrology business. I think h/c will need a considerable gestation period before a material contribution is evidenced (Sell side analysts seem overly fixated with the short term numbers) Likewise, imho, i think Equator will need 18-24 months to make its mark. In respect of valaution,
this a company that is run on a semi private basis thereby historically their allocation of capital has been inefficient; perhaps the commitment to S Wales site heralds a new confidence from management which will enforce a greater institutional imperative thereby a premium valuation, let's hope.

[apad] 26/7/2011 12:38

At the risk of being boring...
still plenty of technical jobs available at RSW.
It's their best indicator - always has been.
I'm most interested in the medical developments - the financial figures are of little import.
BTW - their Technical Director is very impressive.
apad

[rampmeister] 26/7/2011 12:13

Bought in here a few months back in anticipation of final results.
Most of the following probably already covered in this bb already but here goes:-

Interims profit first half 35m. up from 7m. (comparative)
Full year expected 75m. with + 14% approx target pencilled in for 2011/12.
Whilst recent explosive growth level percentages can not be maintained feel this still has considerable momentum left otherwise why would they be buying up Bosch manufacturing 193 acre facility in South Wales?
RSW immune from GB woes with 95% of sales overseas including particularly strong growth in far east.
My hope is that tomorrow's news will start to make + 14% look very conservative.
Judging by today's share price movement re-rating already under way with chart approaching all time high .

RM

[staverly] 25/7/2011 17:38

Rampmeister - nothing unsual in expectation of record final results from most entities but more importantly why do you feel RSW is due significant re-rating as it trades in line with peers? I am not in disagreement with you, just interested in your reasons.

[rampmeister] 25/7/2011 12:25

Record final results ahead of market expectations due Wednesday - significant re -rating on the cards.

RM

[cockneyrebel] 07/7/2011 12:31

Breaking out to new all time blue sky highs!

CR

[cockneyrebel] 05/7/2011 11:20

Setting up for a big break out ahead of the results?

CR

[apad] 22/5/2011 08:45

W......

Fully agree.

And..... the important issue in rating RSW is the potential for medical applications. Currently costing money (and rising), particularly staff costs.
Not convinced about the market for neurology kit, but the dentistry kit might be a good business.
Any views folks - particularly dentists.
apad

[wjccghcc] 21/5/2011 20:25

Remember that the high growth rate is because sales fell off a cliff in 2008/9 and they,re still bouncing back. The rate will moderate to a more normal 10/20% once that effect falls out of the comparables.

[scrutable] 20/5/2011 15:46

I am new to RSW, though i have been dimly aware of it as a good exporter for five years. The Q3 IMS of 17 May caught my eye. It is simply brilliant. I looked at the product line which contains recent innovation likely to revolutionise global inspection in precision engineering, and is likely even to accelerate the current astonishing growth.

This is arguably one of the greatest of UK industrial companies though most people have never heard of it, and its products are beyond most brokers' comprehension. Any company capitalised at over £1 billion with RSW's current sales growth rate of 76%/pa and rising, as well as being strong enough to be exporting x19 times its UK sales ("95% of revenue comes from exports") is a jewel in the UK's small industrial crown. It ranks number one in the LSE 350 industrials for sales and profit growth, and also of margin, and is going to outperform forecasts. Not surprisingly the rolling PE is high (20 times)- but will be sharply reduced in 2012.

The share price at £16.5 this am was about 11% off its recent high, which is dangerous, but leaves enough space for a quick trading profit as RSW recovers its recent fall. I committed to £5,000 worth on high margin today and will plough in further profits as RSW continues its recovery towards resistance at £20.25, though I don't expect any more news flow until FY results around 27 July

The relatively new Equator product looks good enough to be a company maker - except that RSW is already the global leader in its field. Can we call it a paradigm shift to use the jargon?

Apart from the quality of its design and product innovation RSW looks to be a rare example of great management. It is time this company received national recognition. I have never seen it referred to in the press. It certainly stands out as an attractive investment today, and IMO the forecasts are far too cautious. Sales seem to have caught fire this year in the Far East.

[nfs] 17/5/2011 12:37

anyone have a view on eps for the full year?The mkt cap shows as 1225k today and if PBT is say 80m and tax is 20m on that ,that leaves 60m post tax and a PE of 20 approx, implying an EPS of 80p or so

[superstardj] 17/5/2011 10:55

I quite agree with all that has been said about the exemplary manner in which the management managed the company through the crisis. I might also add that the owner-managers waived their entitlement to dividends to share the burden with those taking salary cuts or suffering job losses. But the corporate governance wonks continue to recommend voting down parts of the annual report because Sir David is both Chairman and Chief Executive. Unbelievable. Mindless box-ticking at its absolute worst.

[broadwood] 17/5/2011 09:06

pug - you were spot on - but this'll soon resume a northern trajectory I'd guess.

[redartbmud] 17/5/2011 07:36

APAD

Yes absolutely correct & I KNOW McMurtry was personally devastated by having to make people redundant at the time.
The workforce stood behind management, deferred pay & kept faith. Now they are sharing in the success again.

I reiterate, if only FTSE......

[apad] 17/5/2011 07:22

red....

Founder owners?

apad

[redartbmud] 17/5/2011 07:17

When there was a wobble in the economy the management go their heads down & reorganized quickly.
They stuck to their plan, managed their way out & have now reaped the rewards.

Pity some of the more flamboyant & obscenely overpaid management in some of the FTSE 100 companies aren't as astute & able.