Renishaw YTD pre-tax profits surge

Healthcare technology group Renishaw said on Wednesday that adjusted pre-tax profits had surged in the nine months to 31 March, with revenues also ticking up slightly during the period.

Adjusted pre-tax profits surged 165% to £84.4m, while statutory pre-tax profits shot up 440% to £106.3m, reflecting both a 4% bump in revenues to £407.4m and lower operating costs following restructuring activities initiated last year.

Revenues from Renishaw's metrology business was £379.0m, compared with £365.9m last year, with growth for many of its metrology products, most notable in its machine tool product line and its optical and laser encoder product lines, driven by continuing strong demand in the semiconductor capital equipment and consumer electronics markets.

The FTSE 100-listed group added that revenue from its healthcare business for the first nine months was £28.4m - up from £24.0m at the same point a year earlier.

Looking forward, Renishaw said it continues to see "good momentum" in its business, with a strong order book and expectations that full-year revenues will be between £540.0m and £570.0m and adjusted pre-tax profits will be somewhere in the vicinity of £105.0m to £125.0m.

Renishaw also highlighted that its balance sheet remained "strong", with net cash and bank deposit balances of £197.3m as of 31 March, up from £186.6m on 31 December.

As of 0845 BST, Renishaw shares were up 0.23% at 6,440.0p.