Renishaw plc, the South Gloucestershire-based global high-precision metrology and healthcare technology group, says it has experienced reduced demand for its products as a result of the challenging global macroeconomic environment.
However, the Group balance sheet remains strong with net cash balances of £98.5 million as at 30 September 2019 compared to £106.8 million at 30 June 2019.
The company has published its trading update for the three months ended 30 September 2019. It contains unaudited information that covers the first quarter and the period since.
Revenue for the first quarter of the current financial year was £124.6 million, compared to £154.0 million for the corresponding period last year.
In its metrology business, revenue amounted to £119.7 million compared to £147.4 million last year. The first quarter of 2019 benefitted from a number of large orders from end-user manufacturers of consumer electronic products in the APAC region which have not been repeated this year.
Revenue in its healthcare business was £4.9m compared with £6.6m last year, due to the timing of additive manufacturing machine sales into the healthcare market.
Adjusted profit before tax for the first quarter amounted to £4.3 million compared with £32.6 million last year and the statutory profit before tax amounted to £5.1 million (2019: £33.5 million).
This includes restructuring provisions of £2 million following the decision to close its additive manufacturing facility at Stone, Staffordshire and relocate the activities to its headquarters at Wotton-Under-Edge, Gloucestershire and at Miskin near Cardiff, South Wales.
The company says that, as indicated at the time of its full year results in July, trading conditions are expected to remain challenging through the remainder of this financial year driven by the global macroeconomic environment.
However, Renishaw’s Board believes that the structural demand drivers in its end-markets remain intact. The Group is in a strong financial position and remains committed to its long-term strategy of delivering growth through the development and introduction of innovative and patented products. However, as previously indicated, Renishaw is focussed on improving productivity and is committed to undertaking further initiatives to reduce the Group’s cost base.