Renishaw PLC Trading Statement (8774Y)

TIDMRSW

RNS Number : 8774Y

Renishaw PLC

14 May 2019

Renishaw plc

Trading update

14 May 2019

Renishaw plc, the global high-precision metrology and healthcare technology group, publishes this trading update for the nine months ended 31 March 2019. It contains unaudited information that covers the first three quarters of the financial year and the period since. As previously announced, the Company is hosting its annual investor day today.

Trading activity

 
 Continuing operations        9 months to       9 months to   Change 
                            31 March 2019     31 March 2018 
 Metrology                      GBP404.5m         GBP406.6m    -0.5% 
                         ----------------  ----------------  ------- 
 Healthcare                      GBP26.6m          GBP23.3m    14.2% 
                         ----------------  ----------------  ------- 
 Total Revenue                  GBP431.1m         GBP429.9m     0.3% 
                         ----------------  ----------------  ------- 
 
 Adjusted* Profit 
  before tax                     GBP79.6m          GBP97.6m   -18.4% 
                         ----------------  ----------------  ------- 
 Statutory Profit 
  before tax                     GBP84.8m         GBP104.4m   -18.8% 
                         ----------------  ----------------  ------- 
 

Revenue from continuing operations for the first three quarters of the current financial year was GBP431.1m, an increase of 0.3% compared with GBP429.9m for the corresponding period last year.

Metrology revenue for the nine months to 31 March 2019 amounted to GBP404.5m compared with GBP406.6m for the same period last year. Revenue in our healthcare business has grown to GBP26.6m compared to GBP23.3m for the same period last year, an increase of 14.2%.

Adjusted profit before tax from continuing operations for the first three quarters amounted to GBP79.6m compared with an adjusted profit before tax of GBP97.6m for the corresponding period last year. Statutory profit before tax amounted to GBP84.8m (2018: GBP104.4m).

Financial position

The Group balance sheet remains strong with net cash balances of GBP120.5m as at 31 March 2019 (30 June 2018: GBP103.8m).

Outlook

Based on recent order trends and customer feedback, we now expect full year revenue to be in the range of GBP580m to GBP600m. Adjusted profit before tax is now expected to be in the range of GBP105m to GBP120m and statutory profit before tax in the range of GBP111m to GBP126m. We continue to focus on increasing productivity and on-going investment in the business for the long term.

Notwithstanding the current economic uncertainties, the Board remains confident in the future prospects of the Group.

The preliminary full year results for the year ending 30 June 2019 will be released on 1 August 2019.

 
 Sir David McMurtry                    Will Lee 
 CBE, RDI, FRS, FREng, CEng, FIMechE   Chief Executive 
 Executive Chairman 
 
 14 May 2019 
 
 
 Renishaw plc 
 Registered office    New Mills, Wotton-under-Edge, Gloucestershire, 
                       GL12 8JR 
 Registered number    01106260 
 LEI number           21380048ADXM6Z67CT18 
 Telephone number     01453 524524 
 Website              www.renishaw.com 
 
   *    Adjusted profit before tax 

The adjustment to statutory profit relates to the accounting treatment of certain forward currency contracts used as hedging instruments which do not qualify for hedge accounting as they do not meet the hedge effectiveness criteria set out in the International Accounting Standard IAS39 'Financial Instruments: Recognition and Measurement'. The Board deems that the adjusted profit before tax better reflects the underlying performance of the Group. The following table reconciles statutory profit before tax to adjusted profit before tax:

 
 GBP'm                                                            9 months   9 months 
                                                                     to 31      to 31 
                                                                     March      March 
                                                                      2019       2018 
 
 Adjusted profit before tax from continuing operations                79.6       97.6 
 
 Fair value gains/losses on financial instruments 
  not eligible for hedge accounting 
 
      *    reported in revenue                                         4.8        2.6 
 
      *    reported in losses from the fair value of financial 
           instruments                                                 0.4        4.2 
 
 Statutory profit before tax from continuing operations               84.8      104.4 
                                                                 =========  ========= 
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

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May 14, 2019 02:00 ET (06:00 GMT)