Sign In
Last checked at 
15 Oct 2009 11:06
ο»Ώ
Renishaw plc
Interim Management Statement
This statementΒ has been prepared for the Group andΒ relates to the three months ended 30thΒ September 2009. ItΒ containsΒ unauditedΒ information that covers the first quarter and the period since the quarter end to the date of this interimΒ managementΒ statement.
Trading activity
The recent improvements in order intake and revenue reported on 29thΒ September 2009 have continued, but are still substantially below that of twelve months ago. In the first quarter, good growth has been experienced in theΒ Far East, compared with the last two quarters of the previous year. In product terms, the strongest increase in demand has been for our Encoder products and there has been an encouragingΒ recovery for most other product lines, with order intake still running ahead of sales. Spectroscopy has seen an increase in sales compared with the same quarter last year.
In the three-month period,Β theΒ operating profit amounted to Β£1.3m and theΒ profit before tax amounted toΒ Β£2.0m compared to Β£9.8m last year on revenue of Β£32.5m,Β down from Β£53.0m last year.Β Revenue at previous year exchange rates would have been lower by Β£2.3mΒ and the profit before tax lower by Β£1.2m.
The Board has restored half the voluntary 20% reduction in salaries from 1stΒ OctoberΒ 2009Β to 31stΒ DecemberΒ 2009Β at which time salaries will be fully restored. Provision will be made for further payment, which may take employees back up to full salary for part of the period, depending upon group performance up to 31stΒ December 2009Β and, if appropriate,Β will be paidΒ within theΒ December 2009Β payroll.Β
The Group continues to invest strongly inΒ research and development programmesΒ in both the Metrology and Healthcare sectorsΒ and a number of new products are being introduced in this financial year,Β some of which wereΒ exhibited at the EMO exhibition held last week inΒ Milan,Β Italy.
CurrentΒ indicationsΒ are that there will be anΒ improvement inΒ GroupΒ profits for the year,Β althoughΒ the overall outcome is expected to beΒ well below the level ofΒ twoΒ years ago.Β
Financial position,Β significant events and transactions
The Group has a strong balance sheet and there is a continuing focus on working capital management. At 30thΒ SeptemberΒ 2009,Β net cash balances amounted toΒ Β£21.9m.
There have been no other significant events or transactions that could have had a material impact on the financial position of the Group over the period since the beginning of the financial year.
SirΒ David McMurtryΒ CBE,Β RDI,Β FREng,Β CEng,Β FIMechE
Chairman and Chief Executive
15thΒ October 2009
Renishaw plc
Registered office New Mills,Β Wotton-under-Edge,Β Gloucestershire,Β GL12 8JR
Registered number 1106260
Telephone number 01453 524524
Website www.renishaw.comΒ
Follow the stocks
