Renishaw looks for further growth as it posts record results

Renishaw posted its preliminary results for the year ended 30 June on Thursday, reporting record revenue of £611.5m, with growth at constant exchange rates of 18%.

The FTSE 250 engineering company said it saw revenue growth in all metrology product lines, with strong growth in measurement and automation, coordinate measuring machine, machine tool and additive manufacturing product lines.

It also saw revenue growth in all healthcare product lines, with strong growth in its neurological product line.

The firm also saw record adjusted profit before tax of £145.1m, with growth of 33%.

Its healthcare business achieved profit for the first time, with adjusted profit before tax of £0.3m, swinging from a £7.2m loss in 2017.

Capital expenditure totalled £34.9m for the year, which the board said would provide for future growth, with Renishaw’s headcount increasing 332, including 122 graduates and apprentices.

It said it had a “strong” balance sheet, with cash of £103.8m, compared with £51.9m last year, while the board declared a 15% increase in the dividend to 60.0p.

“The group is in a strong financial position and continues to invest in the development of new products and applications, along with targeted investment in production, and sales and marketing facilities around the world,” said chairman Sir David McMurtry.

“We have experienced strong growth in 2018 and, whilst noting ongoing uncertainty surrounding Brexit and currency exchange rate volatility, your directors remain confident in the long-term prospects for the group due to our innovative product base, extensive global sales and marketing presence and relevance to high-value manufacturing.

“At this early stage in the year, we anticipate growth in both revenue and profits in the current financial year.”