Renishaw Share Discussion Threads

[redartbmud] 30/1/2013 10:27

pearl

Good precis.

Listening to web-cast.

Some technical issues on sound. FD doesn't come across well. Tentative at best, when you can hear him. Time for him to retire I fear if the business is to grow successfully in the future.

red

[pearlfisher] 30/1/2013 09:36

Just 2% increase in turnover in the second quarter is disappointing and outlook for second half is currently forecast only in line with last year. However, I calculate this would still bring profit after tax in at around 82M against 69M last year which is a 19% increase and ahead of forecasts (according to my broker information). The company only has order visibility about a month ahead so hopefully IF China and the US are again on an upward path it is not out of the question that the company could beat this forecast. Not enough of a pull back today to make me want to add to my position but will do so if I see close to £18.00. I like the sector potential and strength of the company. Not overly reliant on Europe.

[9degrees] 30/1/2013 09:20

punished by the market as we were in july 2011 for very much the same reasons . Whatever though the co always seems to pull something out of the bag because it is a class act.!! Revenue up, profits up, dividend up and we all know the world markets are a difficult place so what's new

[redartbmud] 30/1/2013 09:00

Market doesn't like the results then.

[redartbmud] 30/1/2013 07:55

I might just watch the interview at 9.30am Onward and Upwards.

red

[redartbmud] 30/1/2013 07:55

I might just watch the interview at 9.30am Onward and Upwards.

red

[broadwood] 30/1/2013 07:40

I'd like to see a bigger order book but overall results look solid. Whether good enough to send them higher we'll have to see.

Renishaw first half lifted by China orders
Wed 30 Jan 2013



Renishaw first half lifted by China orders LONDON ( - Precision tool maker Renishaw carved out a sharp increase in half yearly earnings, after it was boosted by a string of large consumer electronics orders in China, but cautioned it faces tough financial comparators in the second half.

Adjusted pre-tax profit rose to £43.3m in the six months to December 31st from
£31.2m the same time a year earlier. Revenue for the period was up 18% to £174.2m.

"In the first quarter the group benefited from a number of large orders in China in the consumer electronics market. Such irregular orders produce a distorting effect when comparisons are made between periods."

Rensiahw said it was difficult to predict with certainty the size and timing of forthcoming orders and added that it faces tough financial comparators during the second half, particularly after its strong fourth quarter last year.

The group therefore currently expect that revenue in the second half will be around the level in the second half of last year.

An interim dividend of 11.33p will be offered compared to 10.3p last year.

[broadwood] 29/1/2013 20:54

Seat belts on at 7am.

[redartbmud] 29/1/2013 10:52

APAD

Think 40% growth too optimistic, but not long to wait.

red

[apad] 29/1/2013 07:21

I will be well pleased with revenue growth of 40+% tomorrow :-) Lots of expenses as usual of course.
Anyone else with a rosy glow?
10+% of portfolio, so will be biting fingernails in the morning.
apad

[pearlfisher] 19/1/2013 13:37

Q2 interims due on 30 Jan

[rogerrail] 08/1/2013 11:22

RAZR

RSW are not the leanest company on the block and not well run financially. To some extent RSWs problem is they cant make enough to satisfy demand for a number of reasons. Their products are not designed as "families" which does not make producion efficent and easy to ramp up. Their production facilities are fragmented although they are trying to rectify that albeit slowly with the purchaseof the Miskin site. Another limiting factor is that they can't recruit enough good engineers although on that score I would say they have to look at the remuneration they offer. They have also tried to diversify with very limited success where they would have been better off concentrating on expanding their core metrology products.
But as we have seen very often its the cos like Apple, Intel (and M&S in their day) with the best and most innovative products and spend heavily on RD that make the best margins and achieve the highest growth. IMO RSW are in that category. Ultimateley there is a huge and largely untapped markets in China and India who are waking up to the need to manufacture to high quality standards for which metrology products are vital which and so RSW should continue to achieve good growth rates for a few years to come.

[rogerrail] 08/1/2013 10:55

yes good post APAD , given you a thumbs up for that.

[alter ego] 08/1/2013 08:01

good find APAD

[apad] 08/1/2013 06:32

Ignore the Tintins.
apad

Renishaw plc : Renishaw associate company announces significant expansion
01/07/2013| 04:38pm US/Eastern
7 January 2013

RLS d.o.o., a Slovenian-based supplier of rotary and linear motion sensors, has tripled the size of its operations with a new, 2,100 m2 custom built facility in Komenda, Slovenia. The new building which includes a 180 m2 clean room with electro-conductive flooring and conforming to ISO-8 standard, represents a significant expansion to the design and manufacturing capability for RLS, which since 2000 has been an associate of the Renishaw Group.

The grand opening of the new facility took place in Autumn 2012 and was attended by senior members of the Renishaw Board, the Mayor of the city of Komenda, partners from the Jozef Stefan Institute in Ljubljana and the University of Ljubljana, and long term suppliers and customers.

Janez Novak, Director of RLS, said: "We are draftingfurther company growth based on our own products, good manufacturing capabilities and solid cooperation with associate company Renishaw. In the coming period, our company is going to invest a lot of effort into our excellence in engineering and into upgrading the quality system, especially because some of our products are designed for demanding, safety-critical applications. Our vision is to become a leading global manufacturer of innovative linear and rotary sensors and elements."

Sir David McMurtry, Renishaw's Chairman and Chief Executive, congratulated Mr Novak and the RLS staff on what had been achieved with the new facility and added, "It has been a joy and a pleasure for me to visit RLS again and meet the staff - they are absolutely amazing. I am delighted how the company is growing, and driven by Janez, we are expecting a great future."

RLS is a world leader in the design and manufacture of solid-state encoders for measuring speeds and rotary or linear position in the harshest applications. Its products are widely used in gas pumps, robots, oil-field equipment, subsea systems, construction machinery, medical equipment, off-road vehicles and "smart" machines of all types.Besides motor feedback and positioning control, the magnetic encoders are used for torque sensing, flow control, scanning and instrumentation.

Renishaw took a 50% shareholding in RLS in 2000, giving them access to Renishaw's global distribution strength and applications experience as a world leading position encoder supplier.

[redartbmud] 07/1/2013 16:32

It seema so me that the happy chappie at UBS does not know the company that well, and his research has been somewhat limited.
For certain product lines there is a short order/supply lead time, and the company has to gauge levels of production to meet the need as it arises.
Ihe order book is well documented by the company when it reports. The trick is to assess how much tunover has been, and how profitable it has turned out.
The last muttrings were that business was good, and they have been recruiting additional staff in recent times.
I am not saying that shares are under or over-valued, each must do their own research and make their own judgements, but my comment on UBS is superficial.

red

[broadwood] 07/1/2013 13:38

This seems fair enough to me in view of the fact that the Co said they had only a month's visibility back at the time of the IMS. So we know what to look for when they report.


Renishaw downgraded by UBS
UBS has downgraded its recommendation on Renishaw [LON:RSW] to 'neutral' from 'buy' after the recent strong share price performance given uncertainties over near term opportunities for future growth.

The City broker has raised its share price target to 2,000 pence from 1,900 pence to reflect the re-rating in the sector.

Shares in Renishaw have increased in value by nearly 15 per cent in the last three months.

Analyst Stephen Swanton said: "Having been the best performer in UK Capital Goods in 2012 we think Renishaw's shares may struggle to make further ground without clarity on its end-markets.

"We find judging momentum at Renishaw more difficult than normal. On balance, we think the absence of further electronics project orders in the near term will outweigh the potential broad-based improvement in industrial demand that may be seen elsewhere in sector.

"We would revisit our investment stance on Renishaw at lower levels or when we get better visibility on orders."

[cambium] 07/1/2013 13:18

Cheers guys

[broadwood] 07/1/2013 09:17

Yep - UBS downgrade, I would guess primarily on valuation grounds after a storming run.

Interims are out on 30 Jan so they are getting in first.

[robinnicolson] 07/1/2013 09:12

UBS cuts to neutral from buy. Ups PT to 2000 from 1900.

[alter ego] 07/1/2013 09:04

no but I took the opportunity to buy some

[redartbmud] 07/1/2013 09:04

Post 472
Rogerail may have a grain of truth in his comment. Nothing goes up forever. This could be a pause, with a shakeout of profit takers.
The Rsw market is very thin, so price movements get wildly exaggerated at times.
The next set of announcements will be interesting. I would expect them to be very good, but how will the market react?
I am a long-term holder, but sold some a few days ago. I bought them back today to maintain my holding. It effectively enhanced my dividend by so doing.

red

[edwardt] 07/1/2013 08:54

anyone know of a reason for the drop this am?

[cambium] 07/1/2013 08:17

Crazy drop this morning on no news