Renishaw Report Record Shop-Floor Gauging Revenues
Renishaw has reported record revenue for its 2024 financial year of £691.3m (FY2023: £688.6m), 0.4% higher than FY2023 which was boosted by a strong final quarter. Revenue at constant exchange rates, excluding the impact of forward contracts, was £25.4m (3.7%) higher than the previous year with good revenue growth from systems sales, offset by weaker demand from the semiconductor sector for position measurement products.
Renishaw’s manufacturing technologies revenue was flat at £648.1m, with record revenue recorded for shop-floor gauging and co-ordinate measuring machine (CMM) inspection systems. Renishaw reported good growth in sales of multi-laser additive manufacturing (AM) systems, with a strong second half for sales from key customers in the medical sector but stated weaker demand for position measurement products overall, but with four quarters of sequential growth amid signs of recovering demand from the semiconductor sector.
“The start of FY2025 has seen continuing improvement in demand for our encoder products from the semiconductor manufacturing sector, primarily in the APAC region. This, together with a range of growth opportunities that we are pursuing, especially for metrology and additive manufacturing systems, means that we are expecting to achieve solid revenue growth in the year ahead. We continue to focus on improving productivity in all areas. We expect these efforts, together with higher sales volumes, to drive our operating profit margin towards our target, although inflationary pressures, especially people costs, will affect the rate of improvement in the near term. The progress we’ve made against our three key strategic focus areas this year gives me confidence in our organic growth strategy, and we continue to invest for long-term success” commented Will Lee, Chief Executive.
Adjusted profit before tax was 13% lower at £122.6m (FY2023: £141.0m) with the profit reduction primarily resulting from a combination of the impact of currency on revenues and increased employee expenses, including £2.1m of severance costs. Gross engineering expenditure increased by 6% as the company continues to invest in innovation, whilst distribution cost were 2% higher and administration costs were flat.
Renishaw also reported a strong balance sheet with cash and cash equivalents and bank deposit balances of £217.8m, compared with £206.4m at 30 June 2023. During the year investments were £65.2m (FY2023: £73.8m) in capital expenditure, including completion and occupation of the first phase of expansion of the production facility in Miskin, Wales.
For more information: www.renishaw.com
