Renishaw Regulatory News (RSW)

Renishaw plc

Trading update

14 May 2019

Renishaw plc, the global high-precision metrology and healthcare technology group, publishes this trading update for the nine months ended 31 March 2019. It contains unaudited information that covers the first three quarters of the financial year and the period since. As previously announced, the Company is hosting its annual investor day today.

Trading activity

Revenue from continuing operations for the first three quarters of the current financial year was £431.1m, an increase of 0.3% compared with £429.9m for the corresponding period last year.

Metrology revenue for the nine months to 31 March 2019 amounted to £404.5m compared with £406.6m for the same period last year. Revenue in our healthcare business has grown to £26.6m compared to £23.3m for the same period last year, an increase of 14.2%.

Adjusted profit before tax from continuing operations for the first three quarters amounted to £79.6m compared with an adjusted profit before tax of £97.6m for the corresponding period last year. Statutory profit before tax amounted to £84.8m (2018: £104.4m).

Financial position 

The Group balance sheet remains strong with net cash balances of £120.5m as at 31 March 2019 (30 June 2018: £103.8m).

Outlook

Based on recent order trends and customer feedback, we now expect full year revenue to be in the range of £580m to £600m. Adjusted profit before tax is now expected to be in the range of £105m to £120m and statutory profit before tax in the range of £111m to £126m. We continue to focus on increasing productivity and on-going investment in the business for the long term.

Notwithstanding the current economic uncertainties, the Board remains confident in the future prospects of the Group.

The preliminary full year results for the year ending 30 June 2019 will be released on 1 August 2019.

* Adjusted profit before tax

The adjustment to statutory profit relates to the accounting treatment of certain forward currency contracts used as hedging instruments which do not qualify for hedge accounting as they do not meet the hedge effectiveness criteria set out in the International Accounting Standard IAS39 'Financial Instruments: Recognition and Measurement'. The Board deems that the adjusted profit before tax better reflects the underlying performance of the Group. The following table reconciles statutory profit before tax to adjusted profit before tax: