Renishaw has reported its interim financial performance for the six month period to December 31th 2020. Revenues for the group were £255.1m ($334.4m) compared with £259.4m ($350.2) – representing a modest decline of just 1.7%. Profit before tax of £43.4 million ($58.6m) for the interim period compares to £14.3 million ($19.3) for the same period in the previous year which was primarily due to reduced operating costs.
The company said it is well-placed to seize opportunities presented by any recovery in the global economy featuring increased profits and steady revenue despite the uncertainty created by the Covid pandemic.
The company’s ‘Fit for the Future’ strategy, introduced the previous year, is delivering significant cost savings resulting from a number of actions through which Renishaw has improved productivity and reduced its cost base. Capital expenditure at the group was considerably lower at £4.8 million ($6.5) which was down from £28.4 million ($39.3) the previous year.
Renishaw stated it had achieved revenue growth in the APAC region, but is experiencing continuing weaker demand in the EMEA and Americas regions, affected by the ongoing uncertainty due to the pandemic, and consequential challenges to business sectors such as aerospace.
Group headcount has been reduced which was 4,324 at the end of December 2020 compared to 4,463 at the end of June 2020. Renishaw is currently recruiting production staff to ensure production capacity to meet anticipated future demand.
The company statement commented “The board remains confident in the long-term prospects for the group due to its strong financial position, the high quality of our people, our innovative product pipeline, extensive global sales and marketing presence and relevance to high-value manufacturing.”
“While the trading environment remains uncertain as a result of the pandemic, we currently have a strong order book and we are well placed to take advantage of the opportunities presented by any recovery in the global economy.”
Renishaw stated it remains confident in the long-term prospects for the group and expect full year revenue to be in the range of £515m ($695m) to £545m ($735m) range with adjusted profit before tax expected to be in the range of £85m ($115m) to £105m ($142m).
For more information: www.renishaw.com