RE: Cash28 Jan 2024 07:48
Some ramblings, discuss - Lots of dry powder on hand is a company trait. It's an unwritten policy employed by the founders. Ready cash having served the company well over the years w.r.t self-sufficiency in regards to weathering storms, acquisitions and developments such as that in Miskin which though yet to be publicly stated are likely to bring notable o/a cost savings following site rationalisation fy '24/25. As for founders and their selling up that's the biggy. Has to happen within the next 2/3 years surely. 'Young' Mr McMurtry 36% (if you know you know) and John Deere, not enjoyed the best of health over recent years, 16% in particular will loose the option of selecting their own timing otherwise. Despite attempt at ethical sale it seems, and makes no sense, that there are any suitors out there that want Renishaw ..... as is at least. A consortium offer involving its splitting, principally ellements of healthcare from the remainder having been rejected. Ironically it appears healthcare could now be approaching the cusp of coming good following years of investment. We’ll see. Its diversity now likely means it’ll be carved up and integrated over time amongst the others ...... unfortunately. That said, I still believe a large proportion of design, ip/patent generation, it’s what’s driven growth since inception, and Maufacturing will remain Gloucestershire / South Wales based. Costs are being trimmed on the cheap via severance packages now available across the business attracting interest, rather than just manufacturing services; near term forecasts not being favourable. Unfortunately, for the long term however, this is merely attracting the attention of older long termers, the intent, (quickest way to remove some cost – sale in mind?) aka moderators/mentors, with 20+ years who in areas have played a significant role in Renishaw’s growth and product development. Can young blood employ wise heads and avoid tredding old hard learnt lessons .... ummmm tbc! As for ‘young’ Mr McMurtry it’s rumored that the next gen of AM machines will form his swan-song and his interest / passion now resides elsewhere. See McMurtry Automotive. His current sand pit! JD’s being Chepstow racecourse and his horses. Watch this space but interesting and most likely turbulent times lie ahead under any new ownership.