Renishaw Regulatory News (RSW)

28 Jul 2005 07:30

Renishaw PLC28 July 2005 28th July 2005 Renishaw plc and subsidiary undertakingsPreliminary announcement of results for the year ended 30th June 2005 PROFIT AND LOSS ACCOUNT 2005 2004 £'000 £'000 Turnover 154,095 127,701Cost of sales 81,445 69,188 --------- --------- Gross profit 72,650 58,513 --------- --------- Distribution costs 26,790 25,201Administration costs * 17,036 15,259 --------- --------- Operating profit 28,824 18,053Interest receivable less payable 2,116 2,043Other finance income 310 50 --------- --------- Profit on ordinary activities before taxation 31,250 20,146Tax on profit on ordinary activities 6,250 4,023 --------- --------- Profit for the financial year 25,000 16,123Dividends 14,412 13,100 --------- ---------Retained profit for the financial year 10,588 3,023 --------- --------- ************************* Earnings per share (basic and diluted) 34.3p 22.1pDividend per share 19.8p 18.0p * Administration costs include one-off currency profits arising on forwardforeign exchange contracts totalling £0.7m this year (2004 £0.4m). BALANCE SHEET 2005 2004 £'000 £'000 Fixed assets 66,740 58,496 Current assets: Stocks 27,396 22,288 Debtors 37,384 32,820 Cash (net) 30,072 32,833 Creditors due within one year (29,445) (26,031) --------- ---------Net current assets 65,407 61,910 Provisions for liabilities and charges (5,154) (4,306)Pension liability (14,830) (8,390) --------- ---------Net assets, equal to equityshareholders' funds 112,163 107,710 --------- --------- ************************* CASH FLOW 2005 2004 £'000 £'000 Net cash inflow from operating activities 28,960 22,159 Interest received (net) 2,129 2,026Tax paid (4,487) (3,096) Capital expenditure: Purchase of tangible fixed assets (16,390) (14,899) Proceeds from sale of tangible fixed assets 325 163 --------- --------- (16,065) (14,736)Equity dividends paid (13,459) (12,351) --------- ---------Decrease in cash before currency differences (2,922) (5,998) --------- --------- Analysis of changes in cash at bank during the year: Decrease in cash before currency differences (2,922) (5,998)Currency differences 161 1,596 --------- --------- (2,761) (4,402)Net funds at 1st July 32,833 37,235 --------- ---------Net funds at 30th June 30,072 32,833 --------- --------- TURNOVER ANALYSIS 2005 2004 2005 sales at 2004 £'000 £'000 exchange rates £'000 Continental Europe 57,408 48,983 57,120Far East, incl Japan & Australia 42,719 34,099 44,292North & South America 39,531 33,305 41,438Other overseas regions 4,076 2,494 4,096UK and Ireland 10,361 8,820 10,361 -------- -------- --------Total Group turnover 154,095 127,701 157,307 -------- -------- -------- *************************NOTES: 1. The financial information set out above does not constitute the Company's statutory financial statements for the years ended 30th June 2005 or 30th June 2004 but is derived from those financial statements. Statutory financial statements for 2004 have been delivered to the Registrar of companies, whereas those for 2005 will be delivered following the Company's annual general meeting. The auditors have reported on those financial statements; their reports were unqualified and did not contain a statement under section 237(2) or (3) of the Companies Act 1985. 2. The proposed final dividend of 13.70 net per share for the year ended 30thJune 2005 will be paid on 17th October 2005 to shareholders on the register on 16th September 2005. **************************The Chairman's statement to be included in the 2005 Annual report and financialstatements: TradingI am delighted to announce record results for the year to 30th June 2005, bothin turnover and profitability. Turnover increased by 21% to £154.1m (2004 £127.7m), with growth in allgeographical markets and product lines. There was significant growth in the FarEast, especially Japan, the USA and Europe, including the UK. Above-averageproduct line growth was seen in digitising (including dental), machine tool andco-ordinate measuring machine products. Turnover would have been £3.2m higher atprevious year currency exchange rates. Operating profit increased by 60% to £28.8m (2004 £18.1m). Profit before taxrose by 55% to £31.3m (2004 £20.1m), lifting earnings per ordinary share by 55%to 34.3p (2004 22.1p). ManufacturingCapital expenditure during the year has been largely associated withmanufacturing - both new plant and machinery, and the premises to house them.Significant progress has been made in preparing the new Stonehouse factory(acquired for £5 million during the year) for the transfer of facilities fromNew Mills. The new anodising plant has been installed and when commissioned willcommence operation in September. Total capital expenditure amounted to £16.0m(2004 £15.6m), of which £6.0m was freehold property. Research and developmentThere have been a number of new products successfully introduced during theyear, in particular the Revo and Renscan 5 providing unique 5 axis scanningtechnology for use on co-ordinate measuring machines, which offer a step changein the level of accuracy and speed of measurement. We have also introduced theSignum RELM - a high accuracy linear scale with IN-TRAC optical referencemark, Procera Forte and Incise dental scanners, TRS1 - a tool breakagedetection system, OMP60 spindle probe, RP120 interpolator and DX10 USB interfacefor our laser interferometer. Total research and development expenditure duringthe year, including engineering costs, amounted to £25.4m (2004 £22.0m). MarketingNew offices have been opened in India (Delhi and Pune) and Russia (St Petersburgand Perm) and our staff in Nagoya, Japan have completed their move to a largeroffice. The Group now has 33 offices operating in 27 countries. During thiscurrent fiscal year, further investment will be made in India, China and Turkey. The Group has continued to participate in exhibitions throughout the world,demonstrating and introducing the Group's product range. The RevoTM, referred toabove, was particularly well received at the Control Show in Sinsheim, Germanyin April. Visits to the Renishaw websites during the year have more than doubled, oftenreaching over 160,000 per month. Balance sheetThe Group continues to maintain significant cash balances at £30.1m (2004£32.8m) after further substantial capital expenditure of £16.0m and increasingstock levels of £5.1m to support the growing turnover. Following significant changes to the assumptions applied to the triennialactuarial valuation at 30th June 2005, the pension fund liability net ofdeferred tax, as required to be measured under the specific rules for FRS17, hasincreased to £14.8m (2004 £8.4m). PersonnelTotal staff numbers have grown by 6% during the year and currently stand at1,865. Recruitment has principally been directed at assembly and manufacturingin the UK, and overseas Sales and Marketing, especially in the Far East andIndia. Personnel are our prime resource without whom Renishaw's progress would not bepossible. I give my sincere thanks and warm appreciation to them all. Prospects and dividendThe current year has started well, although as is typical, forward visibility islimited with an order book of less than one month's activity. Although weparticipate in cyclical business areas, the Board is confident, at this earlystage, about the prospects for the current year and the Group's long termfuture. Your board proposes a final dividend of 13.7p per share, giving a total for theyear of 19.8p (2004 18.0p). Sir David R McMurtry, CBE, RDI, CEng, FIMechE, FREngChairman & Chief Executive28th July 2005 Enquiries: B R Taylor 01453 524445 A C G Roberts 01453 524445 Registered office:New Mills, Wotton-under-Edge, Gloucestershire. GL12 8JRTelephone:01453 524524 This information is provided by RNS The company news service from the London Stock Exchange