Renishaw revenues and profits rise in first half

Metrology and healthcare technology company Renishaw reported first half revenue of £255.1m on Thursday, down slightly from £259.4m year-on-year.

The FTSE 250 company said its adjusted profit before tax for the six months ended 31 December came in at £43.4m, up from £14.3m a year earlier, while adjusted earnings per share improved to 49.2p from 15.1p.

Its board declared an interim dividend per share of 14p, compared to the nil distribution it made at the half-year 12 months ago.

On a statutory basis, profit before tax rose to £63.9m from £99m, and statutory earnings per share came in at 72.1p, growing from 10.2p.

Renishaw said the “significant” improvement in profitability in the first half came as the benefits of its ‘Fit for the Future’ strategy were being felt.

It said it had a “robust” balance sheet, with net cash and bank deposit balances of £186.6m, compared with £120.4m as at 30 June.

“The board remains confident in the long-term prospects for the group due to its strong financial position, the high quality of our people, our innovative product pipeline, extensive global sales and marketing presence and relevance to high-value manufacturing,” the directors said in their statement.

“Whilst the trading environment remains uncertain as a result of the pandemic, we currently have a strong order book, and we are well placed to take advantage of the opportunities presented by any recovery in the global economy.”

At this stage, the board said it expected full-year revenue to be in the range of £515m to £545m, while adjusted profit before tax was pencilled in at between £85m and £105m .

At 0852 GMT, shares in Renishaw were flat at 6,120p.