Renishaw plc

Trading update

21 October 2021

Renishaw plc, the global provider of manufacturing technologies, analytical instruments and medical devices, publishes this trading update for the three months ended 30 September 2021. It contains unaudited information that covers the first quarter of the financial year and the period since.

Trading activity

Group revenue for the first quarter of the current financial year was £157.8m, compared to £116.9m for the corresponding period last year. We have experienced strong revenue growth in all our regions following an improvement to global macroeconomic conditions over the last year.

In our Manufacturing technologies business (formerly Metrology) revenue amounted to £148.5m, compared to £111.2m last year, with the strong growth driven largely by demand from the semiconductor and electronics markets. In our Analytical instruments and medical devices business (formerly Healthcare) revenue was £9.3m, compared with £5.7m last year.

Adjusted* profit before tax for the first quarter amounted to £41.7m compared with £18.3m last year and the statutory profit before tax amounted to £39.3m (2020: £28.2m).

Financial position 

The Group balance sheet remains strong with net cash and bank deposit balances of £234.8m at 30 September 2021 (30 June 2021: £215.0m).

Outlook

The 2022 financial year has started with a strong first quarter and we currently have a record order book. We expect demand from the semiconductor and electronics sectors to remain strong and that there will continue to be a recovery in the machine tool and co-ordinate measuring machine markets. In our Analytical instruments and medical devices markets, we have seen confidence return and capital expenditure projects released.

The Board continues to be confident in our long-term prospects, due to our 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.

The results for the half year ending 31 December 2021 are expected to be released on 3 February 2022.

*    Adjusted profit before tax

The adjustment to statutory profit relates to the accounting treatment of certain forward currency contracts used as hedging instruments which do not qualify for hedge accounting as they do not meet the hedge effectiveness criteria set out in the International Accounting Standard IFRS 9 'Financial Instruments'.

The Board deems that the adjusted profit before tax better reflects the underlying performance of the Group. The following table reconciles statutory profit before tax to adjusted profit before tax: