Renishaw PLC Trading Statement (7785X)

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RNS Number : 7785X

Renishaw PLC

28 April 2023

Renishaw plc

Trading update

28 April 2023

Revenue growth achieved despite lower demand from the semiconductor and electronics sectors.

Renishaw plc, the global provider of manufacturing technologies, analytical instruments and medical devices, publishes this trading update for the nine months ended 31 March 2023. It contains unaudited information that covers the first nine months of the financial year and the period since.

Trading activity

 
                                     9 months        9 months   Change 
                                  to 31 March     to 31 March 
                                         2023            2022 
 
 Manufacturing technologies         GBP496.7m       GBP467.4m       6% 
                               --------------  --------------  ------- 
 Analytical instruments and 
  medical devices                    GBP25.3m        GBP25.0m       1% 
                               --------------  --------------  ------- 
 Total Revenue                      GBP522.0m       GBP492.4m       6% 
                               --------------  --------------  ------- 
 
 Adjusted* Profit before 
  tax                               GBP111.8m       GBP124.0m     -10% 
                               --------------  --------------  ------- 
 Statutory Profit before tax        GBP117.3m       GBP120.2m      -2% 
                               --------------  --------------  ------- 
 

Revenue for the nine months to 31 March 2023 was GBP522.0m, an increase of 6% compared to GBP492.4m for the corresponding period last year.

In our Manufacturing technologies business, revenue for the first nine months was GBP496.7m, compared with GBP467.4m last year. Strong systems sales have contributed to growth in our industrial metrology and additive manufacturing business. Our position measurement business has continued to see subdued demand from the semiconductor and electronics sectors in the third quarter, resulting in lower revenue this year compared to last year. Revenue from our Analytical instruments and medical devices business for the first nine months was GBP25.3m compared with GBP25.0m last year.

Adjusted profit before tax for the nine months to 31 March 2023 amounted to GBP111.8m compared with GBP124.0m last year and the statutory profit before tax amounted to GBP117.3m (FY2022: GBP120.2m). As previously reported, we have invested in increased customer facing activities this year and operating cost increases also reflect pay reviews undertaken in the last two years.

Financial position

The Group balance sheet remains strong with cash and cash equivalents and bank deposits amounting to GBP227.8m (31 December 2022: GBP211.5m).

Outlook

We expect current market conditions to continue during the remainder of this financial year. We continue to invest in innovative new products and manufacturing capacity to support our growth objectives, whilst managing costs carefully and focusing on productivity. We anticipate that revenue for the full year will be between GBP680m and GBP700m, and adjusted profit before tax will be between GBP135m and GBP150m.

The preliminary results for the year ending 30 June 2023 will be released on 14 September.

 
 Will Lee          Allen Roberts 
 Chief Executive   Group Finance Director 
 
 28 April 2023 
 
 
 Renishaw plc 
 Registered office    New Mills, Wotton-under-Edge, Gloucestershire, 
                       GL12 8JR 
 Registered number    01106260 
 Telephone number     [phone] 
 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 IFRS 9 'Financial Instruments'; and

- third-party costs in the previous year relating to the formal sale process ('FSP') concluded in July 2021.

The Board views the adjusted profit before tax as a useful measure to analyse the underlying performance of the Group. The following table reconciles statutory profit before tax to adjusted profit before tax:

 
                                                           9 months       9 months 
                                                        to 31 March    to 31 March 
                                                               2023           2022 
                                                              GBP'm          GBP'm 
 
 Statutory profit before tax                                  117.3          120.2 
 
 Third-party FSP costs                                            -          (0.2) 
 Fair value (gains)/losses on financial instruments 
  not eligible for hedge accounting 
  - reported in revenue                                       (6.9)          (0.1) 
  - reported in (gains)/losses from the fair value 
   of financial instruments                                     1.4            4.1 
 
 Adjusted profit before tax                                   111.8          124.0 
----------------------------------------------------  -------------  ------------- 
 

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April 28, 2023 02:00 ET (06:00 GMT)