Renishaw has reported a substantial increase in revenue and profits for the first nine months of its 2022 financial year on good demand, leading to growth in all product lines. Renishaw recorded total revenue growth of 22% in the nine months to March 31 to £492.4 million from £407.4 million in the same period in the year prior.
Renishaw’s Manufacturing Technologies unit recorded revenue 22% higher year-on-year at £467.4 million from £382.1 million, with growth in all its product lines.
Pretax profit increased by 13% to GBP120.2 million from GBP106.3 million.
“Strong demand for our encoder product lines has largely been driven by increased investments in industrial automation and the semiconductor and electronics capital equipment markets,” Renishaw stated. “We also experienced good growth in demand for our machine tool and coordinate measuring machine product lines, where we have benefited from a recovery in investments in metal cutting machinery and the need to measure the outputs from those processes.”
The company also stated it has a healthy order book and due to its strong financial position said it is confident in its long-term prospects. It added that its balance sheet remains robust with cash and bank deposit balances amounting to £241.1 million, up 8.6% from £222.0 million a year earlier.
Renishaw expects financial 2022 revenue to be between £655 million and £675 million with adjusted pretax profit to be in the range of £155 million to £170 million.
The company said it’s closely monitoring the current lockdowns in China and is taking mitigating actions where possible against potential business disruption. “This uncertain position makes trading levels in China in the remainder of this financial year difficult to predict,” it said. Renishaw is also in the process of ceasing its trading operations in Russia and booked a £2 million impairment on its assets in the country during the third quarter. Combined sales to Russia and Belarus have represented around 1% of total group revenue, the company stated.
For more information: www.renishaw.com