Renishaw Financial Results Confirm Global Business Challenges
Renishaw, bellwether of the metrology industry, has made a preliminary announcement of unaudited results for its financial year ended 30 June 2020.
- Revenue was £510.2m, 11% lower than 2019 revenue of £574.0m.
- Revenue was lower in all regions, with the challenging global macroeconomic conditions throughout the year and the COVID-19 pandemic impacting most product lines.
- Metrology revenue was lower by 11% at £475.2m, largely as a result of trade tensions between the USA and China, weaker demand in the machine tool sector and the impact of the pandemic. However, the company experienced good growth in its position encoder product line due to a recovery in the semiconductor market.
- Healthcare revenue decreased by 15% to £35.0m, with COVID-19 causing delays in orders, shipments, installations and postponements of elective surgery.
- Adjusted* profit before tax of £48.6m (2019: £103.9m), a reduction of 53%.
- Statutory profit was £3.2m compared with £109.9m last year.
Actions were taken in the year to protect the long-term health of the business by preserving cash, improving productivity and reducing the Group’s cost base which included reductions in direct manufacturing staff in the UK, Ireland and India and restructuring of its additive manufacturing business.
Renishaw continues with a strong balance sheet, with net cash and bank deposits of £120.4m as at 30 June 2020, compared with £106.8m at 30 June 2019.
“It has been a particularly challenging year for the Group and we are extremely proud of the commitment our employees have shown during these exceptional times. Looking ahead, there are many exciting opportunities to grow our business, due to our new product pipeline, excellent manufacturing and commercial operations, and highly skilled people.” commented Sir David McMurtry, Renishaw Executive Chairman.
For more information: www.renishaw.com