Renishaw PLC Trading Statement (3073R)

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RNS Number : 3073R

Renishaw PLC

26 October 2023

Renishaw plc

Trading update

26 October 2023

Steady recent performance in challenging market conditions

Renishaw plc, the global provider of manufacturing technologies, analytical instruments and medical devices, publishes this trading update for the three months ended 30 September 2023. It contains unaudited information that covers the first quarter of the financial year and the period since.

Trading activity

 
                                        3 months to      3 months to   Change 
                                       30 September     30 September 
                                               2023             2022 
 
 Manufacturing technologies               GBP156.8m        GBP172.8m      -9% 
                                    ---------------  ---------------  ------- 
 Analytical instruments and 
  medical devices                           GBP7.7m          GBP7.1m      +8% 
                                    ---------------  ---------------  ------- 
 Total revenue                            GBP164.5m        GBP179.9m      -9% 
                                    ---------------  ---------------  ------- 
 Total revenue at FY2023 exchange 
  rates                                   GBP169.6m        GBP179.9m      -6% 
                                    ---------------  ---------------  ------- 
 
 Adjusted(*) profit before 
  tax                                      GBP28.0m         GBP40.0m     -30% 
                                    ---------------  ---------------  ------- 
 Statutory profit before tax               GBP28.0m         GBP38.6m     -27% 
                                    ---------------  ---------------  ------- 
 

Revenue was GBP164.5m, compared to GBP179.9m for the corresponding period last year, representing a 9% reduction and a 6% reduction at constant currency. All regions experienced reduced demand compared to Q1 FY2023. Whilst there was modest growth for the Industrial Metrology area of our business, revenues for our Position Measurement products were substantially below a strong period last year. However, compared to Q4 FY2023, revenue was 1% lower at constant currency, with no significant changes to market conditions.

In our Manufacturing technologies business, revenue amounted to GBP156.8m, compared to GBP172.8m last year. Revenue for our Analytical instruments and medical devices business was GBP7.7m, an increase of 8% compared with GBP7.1m last year.

Adjusted profit before tax for the first quarter amounted to GBP28.0m (FY2023: GBP40.0m) and was 4% lower than the final quarter of the previous financial year. Statutory profit before tax amounted to GBP28.0m (FY2023: GBP38.6m).

Financial position

The Group balance sheet remains strong with net cash and cash equivalents and bank deposit balances of GBP206.7m at 30 September 2023 (30 June 2023: GBP206.4m).

Outlook

Trading conditions remain challenging due to subdued demand, most notably from the semiconductor sector. We continue to see positive investment trends in robotics, defence, low emission transportation and additive manufacturing.

We continue to carefully manage costs, implement targeted price rises and focus on productivity improvements.

Our investments in product innovation, infrastructure, and people leave us well-positioned to benefit from a recovery in our markets. We are confident in our strategy to deliver sustainable long-term growth.

The results for the half year ending 31 December 2023 will be released on 6 February 2024.

 
 Will Lee             Allen Roberts 
 Chief Executive      Group Finance Director 
 
 26 October 2023 
 
 Renishaw plc 
 Registered office    New Mills, Wotton-under-Edge, Gloucestershire, 
                       GL12 8JR 
 Registered number    01106260 
 Telephone number     [phone] 
 Website              www.renishaw.com 
 

* 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'. The Board deems that the adjusted profit before tax also represents a useful measure of performance of the Group. All previously ineffective contracts matured in FY2023 and no further contracts have been designated as ineffective in FY2024. The following table reconciles statutory profit before tax to adjusted profit before tax:

 
 GBP'm                                                         3 months           3 months 
                                                        to 30 September    to 30 September 
                                                                   2023               2022 
                                                                GBP'000            GBP'000 
 
 Statutory profit before tax                                       28.0               38.6 
 
 Fair value (gains)/losses on financial instruments 
  not eligible for hedge accounting 
  - reported in revenue                                               -              (3.7) 
  - reported in (gains)/losses from the fair value 
   of financial instruments                                           -                5.1 
 
 Adjusted profit before tax                                        28.0               40.0 
----------------------------------------------------  -----------------  ----------------- 
 

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October 26, 2023 02:00 ET (06:00 GMT)