Big profits boost for Renishaw as its fit for the future strategy pays off

W Renishaw HQ

Gloucestershire manufacturer Renishaw has reported £255.1 million in revenues for the six months ended 31 December 2020, down from £259.4 million for the corresponding period last year.

However, it was its profitability which is the real star of this global manufacturer’s report. Adjusted profit before tax for the period was £43.4 million, up from £14.3 million in the first half of 2019, and statutory profit before tax of £63.9 million (up from £9.9 million in 2019).

The company said it achieved good revenue growth in its APAC region, where it continues to see strong demand for its encoder product lines which are benefitting from increased investments in the semiconductor and electronics capital equipment markets.

However, the company is experiencing continuing weaker demand in its EMEA and Americas regions, which have been much more affected by the ongoing uncertainty caused by the pandemic and consequent challenges to key sectors, particularly aerospace.

Renishaw’s ‘Fit for the Future’ strategy has delivered improved productivity and significant reductions in the Group’s cost base. The strategy included a resizing of the business, restructure of its AM product line and a focus on prioritising design projects to accelerate the market launch of significant products. Employee headcount dropped at the end of December to 4,324, down from 4,463 at the end of June.

The Group said it remains committed to its long-term strategy of delivering growth through the development and introduction of innovative and patented products.

During the first six months of this year it incurred net engineering expenditure of £37.7 million compared with £46.1 million last year. Its engineering teams have continued to develop products during the pandemic and last month we launched the FORTiS™ enclosed optical encoder which provides high-performance measurement in harsh environments, including machine tools and semiconductor wafer dicing.