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27 Oct 2022 07:00
Renishaw plc
Trading update
27 October 2022
Renishaw plc, the global provider of manufacturing technologies, analytical instruments and medical devices, publishes this trading update for the three months ended 30 September 2022. It contains unaudited information that covers the first quarter of the financial year and the period since.
Trading activity
| 3 months to 30 September 2022 | 3 months to 30 September 2021a | Change |
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Manufacturing technologies | £172.8m | £152.3m | +13% |
Analytical instruments and medical devices | £7.1m | £5.5m | +29% |
Total revenue | £179.9m | £157.8m | +14% |
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Adjustedb profit before tax | £40.0m | £41.7m | -4% |
Statutory profit before tax | £38.6m | £39.3m | -2% |
Overall Group performance was in line with our expectations for the first quarter of the year.
Revenue was £179.9m, compared to £157.8m for the corresponding period last year, with revenue growth in all regions. This includes a £4.0m currency benefit at constant exchange rates, net of hedging.
In our Manufacturing technologies business, revenue amounted to £172.8m, compared to £152.3m last year, with strong growth in our core industrial markets. In our Analytical instruments and medical devices business, revenue was £7.1m, compared with £5.5m last year.
Adjusted profit before tax for the first quarter amounted to £40.0m (FY2022: £41.7m) and is comparable with our profitability in the final quarter of the previous financial year. The current year includes a net £1.0m gain relating to currency. Statutory profit before tax amounted to £38.6m (FY2022: £39.3m).
Financial position
The Group balance sheet remains strong with net cash and bank deposit balances of £258.6m at 30 September 2022 (30 June 2022: £253.2m).
Outlook
We have made a positive start to the current year and our order book remains strong. We have, as recently reported, seen a weakening in order intake from the semiconductor and electronics sectors, and general market sentiment is becoming more cautious. In light of this, we are managing costs carefully and focusing on productivity.
Overall, we're confident in our strategy and the investments we're making in people and infrastructure to deliver sustainable, long-term growth, and we look forward to the year ahead.
The results for the half year ending 31 December 2022 will be released on 2 February 2023.
Will Lee | Allen Roberts |
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Chief Executive | Group Finance Director |
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27 October 2022 |
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Renishaw plc | ||
Registered office | New Mills, Wotton-under-Edge, Gloucestershire, GL12 8JR | |
Registered number | 01106260 | |
Telephone number | +44 (0) 1453 524524 | |
Website | www.renishaw.com | |
a Results relating to sales of additive manufacturing machines to medical and dental customers are no longer recognised in the Analytical instruments and medical devices operating segment. Comparative figures have been reclassified accordingly, with £3.8m reclassified from Analytical instruments and medical devices to Manufacturing technologies in the 3 months to 30 September 2021.
b 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 IFRS 9 'Financial Instruments'. 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:
£'m | 3 months to 30 September 2022 | 3 months to 30 September 2021 |
| £'000 | £'000 |
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Statutory profit before tax | 38.6 | 39.3 |
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Fair value (gains)/losses on financial instruments not eligible for hedge accounting |
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- reported in revenue | (3.7) | 1.3 |
- reported in (gains)/losses from the fair value of financial instruments | 5.1 | 1.1 |
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Adjusted profit before tax | 40.0 | 41.7 |
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