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Renishaw Reports Interim 2023 Financial Results

Renishaw has released its financial results for the first six months of its current financial year.

Revenue for the six months ended 31 December 2022 was £347.7m, ($427.7) an increase of 7% (1% increase at constant exchange rates) compared with £325.2m for the corresponding period last year. The company achieved revenue growth of 21% (8% at constant exchange rates) in the Americas, 7% (4% at constant exchange rates) in EMEA and 1% (-4% at constant exchange rates) in APAC. There was growth for both its Manufacturing technologies, and Analytical instruments and medical devices segments, with strong growth in sales of multi-laser additive manufacturing (AM) systems, machine calibration systems, laser encoder systems and REVO 5-axis co-ordinate measuring machine (CMM) inspection systems. Demand from the semiconductor and electronics sectors was weaker, resulting in a reduction in sales of optical encoder products.

Adjusted profit before tax for the period was £73.5m ($90.4) (21% of revenue) compared with £84.2m (26% of revenue) last year. Statutory profit before tax for the period was £77.8m, compared with £81.5m last year.

Renishaw stated in a market communication that it remains committed to its long-term strategy of developing innovative and patented products to create strong market positions. During the first six months of the financial year, the investment in engineering, including research and development, increased by 22% to £46.1m. Since June 2022, it commented that it has launched a number of new products including the CENTRUM metal rotary scale disc system for the ATOM DX encoder series, the ACS-1 system that brings improved accuracy and speed to the calibration of machine tool probes and the new inLux SEM Raman interface for its spectroscopy line.

Manufacturing Technologies

Revenue for Manufacturing Technologies segment, which comprises Industrial Metrology, Position Measurement and Additive Manufacturing businesses, was £330.9m for the first six months, compared with £308.7m last year. Renishaw achieved strong growth in the Americas and good growth in EMEA, with reduced revenue in  the APAC region (at constant exchange rates) mainly due to lower sales of optical encoders to the semiconductor and electronics market. Adjusted operating profit was £66.8m, compared with £81.3m for the comparable period last year. As already noted there was strong growth for RenAM 500Q multi-laser AM system where its productivity and ability to produce high quality parts is leading to repeat business from customers in sectors as diverse as consumer electronics, healthcare, aerospace, defence and tooling. There was also strong growth for our CMM inspection systems, based on the REVO 5-axis system, which is meeting customer demands for multi-sensor metrology to provide comprehensive inspection and process feedback from a single measurement platform. The Renishaw calibration business also had strong growth compared to the same period last year as machine builders focus on the accuracy and reliability of ever more complex machinery.

Weaker demand from semiconductor customers due to reducing their stock levels and market uncertainty, led to reduced sales of optical encoder products. However, demand for high accuracy laser encoders for front-end semiconductor manufacturing processes was reported to be very strong. Global forecasts for the construction of semiconductor fabrication plants, driven by new technology, geopolitical considerations and supply chain security, remain positive and Renishaw management are optimistic about a mid-term recovery in sales to this important sector. 

Net cash and bank deposit balances at 31 December 2022 were £211.5m, compared with £253.2m at 30 June 2022, primarily reflecting the cash generated from operating profit of £81.2m, offset by the working capital movement of £40.6m, capital expenditure of £20.2m, tax payments of £16.9m and the final dividend payment of £41.2m in respect of FY2022.

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