Renishaw rides the storm, reporting revenue growth in healthcare, but challenging markets remain

W Renishaw HQ

Group revenue for the first quarter of the current financial year at Renishaw was £116.9 million, compared to £124.6 million for the corresponding period last year, the global metrology and healthcare technology manufacturer reported today.

In a trading update released today for the three months ended 30 September 2020, the Gloucestershire-based manufacturer reported that its metrology business revenue amounted to £110.2 million compared to £119.7 million last year. Geographically, it has experienced revenue growth in its Asia Pacific region where it has seen increased demand for its optical and laser encoder product lines due to a recovery in the semiconductor market.

Revenue in its Europe, Middle East and Africa (EMEA) and Americas regions has reduced due to the ongoing uncertainty caused by the pandemic and weaker demand, particularly in the aerospace and automotive sectors.

But the company’s healthcare business revenue grew, to  £5.7 million compared with £4.9 million last year, with increased demand for both its spectroscopy and neurological product lines.

 Adjusted profit before tax for the first quarter amounted to £18.3 million compared with £4.3 million last year and the statutory profit before tax amounted to £28.2 million (2019: £5.1 million). 

Adjusted profit before tax has benefitted from a number of actions taken last year to reduce the Group’s operating cost base and also included global job retention grant income totalling £2.3m (2020: £nil). 

In its update, Renishaw says it is in a strong financial position and continues to invest in the development of new products and applications, along with targeted investment in production, and sales and marketing facilities around the world. Given the continuing uncertain macroeconomic backdrop, including the pandemic, however, it continues to expect challenging market conditions, particularly in the aerospace and automotive sectors.