Renishaw Q1 profit and revenue rise on Far East orders

FSTE 250 engineer Renishaw reported a rise in first-quarter profit and revenue on Friday thanks in part to a number of large orders from Far East customers in the consumer electronics markets.

In an update for the three months to 30 September, the company said adjusted pre-tax profit was up 137% to £35.8m and statutory pre-tax profit increased to £36.9m from £10.7m the year before. Meanwhile, revenue from continuing operations came in at £142.3m, up 26% from the corresponding period last year.

Revenue from the metrology business rose to £137.1m from £108.9m last year, with an underlying growth at constant exchange rates of 20%, while revenue in the healthcare business came in at £5.2m compared with £4m last year, representing growth of 29% at constant exchange rates.

Renishaw said its balance sheet remains strong, with net cash balances of £82.6m as at 30 September versus £64.8m in June, including an escrow account of £12.9m, “which provides additional security for the UK defined benefit pension scheme”.

“The board remains confident in the future prospects of the group and of achieving good growth in both revenue and profit in this financial year.”

At 1115 BST, the shares were down 0.5% to 4,689.00p.