Renishaw plc
19 September 2023
Preliminary announcement of results for the year ended 30 June 2023
Solid performance in challenging markets
| 2023 | 2022 | Change | |
| Revenue (£m) | 688.6 | 671.1 | +3% |
| Adjusted1 profit before tax (£m) | 141.0 | 163.7 | -14% |
| Adjusted1 earnings per share (pence) | 155.1 | 185.5 | -16% |
| Dividend per share (pence) | 76.2 | 72.6 | +5% |
| Statutory profit before tax (£m) | 145.1 | 145.6 | – |
| Statutory earnings per share (pence) | 159.7 | 165.4 | -3% |
Performance highlights
· Revenue of £688.6m (FY2022 £671.1m):
• Revenue growth in challenging trading conditions, although 1% lower at constant exchange rates; and
• Good revenue growth from system sales, offset by weaker demand from the semiconductor sector.
· Manufacturing technologies revenue increased by 2% to £648.2m, with:
• Good growth in sales of multi-laser additive manufacturing (AM) systems, 5-axis co-ordinate measuring machine (CMM) inspection systems, laser encoders and machine calibration systems; and
• Weaker demand for optical encoders, notably in APAC, due to lower investment in the semiconductor sector.
· Analytical instruments and medical devices revenue increased by 10% to £40.3m, with:
• Record sales for our Spectroscopy product line, with strong growth across all our regions; and
• Growth for our Neurological product line, with renewed growth in robot sales.
· Adjusted* profit before tax of £141.0m (FY2022 £163.7m), with return on sales reduced to 20% (24% last year).
• 1% reduction in gross margin before engineering costs: employee pay inflation and reduction in production volumes (leading to a lower recovery of fixed overheads), partially offset by currency and price increases; and
• Engineering, distribution and administration costs up 12%: targeted recruitment, plus investment in employee pay in all areas to improve employee retention, and other inflationary pressures.
· Statutory profit before tax of £145.1m (FY2022: £145.6m).
· Strong balance sheet with net cash and bank deposit balances of £206.4m, compared with £253.2m at 30 June 2022:
• Invested £73.8m (FY2022: £30.8m) in capital expenditure, including ongoing development of our production facility in Miskin, Wales
· Final dividend of 59.4p per share.
* Note 29, ‘Alternative performance measures’, defines how Adjusted profit before tax, Adjusted earnings per share, Adjusted operating profit and Revenue at constant exchange rates are calculated
Strategic progress
· A number of new product launches including a new radio transmission system for our machine tool probes, a scanning electron microscope interface for our Raman spectrometers, and a smart factory software platform to consolidate shop floor measurement data.
· Introduced our new Industrial Automation product line to enhance the accuracy and productivity of industrial robots, applying our proven technology and knowledge to a close adjacent market that is experiencing strong underlying growth.
· In shop-floor metrology, we achieved good growth in end user sales of our AGILITY® co-ordinate measuring machines equipped with REVO® 5-axis systems, and we’ve also seen increased sales of our EQUATOR™ flexible gauges for electric vehicle manufacturing applications.
· A significant number of machine tool builders have now evaluated our FORTiS™ enclosed optical encoders with a growing number of early adopters fitting them to machines being produced in volume.
· Growth in repeat sales of our multi-laser AM machines to the medical and consumer electronics sectors.
· Rising sales of our Virsa™ Raman analyser which takes research-grade materials analysis out of the lab and into sampling applications in-situ, including solar cell analysis and cultural heritage.
· Upgraded our machine tools and expanded our automated encoder assembly systems to enable us to rapidly ramp production up and down to track cyclical demand.
· Good progress on our largest ever capital expenditure project at Miskin, where we are increasing manufacturing floorspace by 50% in a phased manner.
· Committed to a new Net Zero target with an aim to achieve a 50% reduction in our Scope 3 emissions by 2030.
William Lee, Chief Executive, commented:
“In challenging trading conditions, our performance demonstrates the resilience of our business model, and the hard work and dedication of our teams around the world. In a year when we saw a downturn in demand from one of our key sectors, we achieved good growth in systems sales, which is an area of strategic priority.
We have seen a steady start to FY2024 and our order book remains solid. We continue to see positive trends for investment in low emission transportation, defence, additive manufacturing and robotics. Meanwhile, demand from semiconductor equipment suppliers for position encoders remains subdued. While the short-term macroeconomic picture remains unclear, we continue to manage costs prudently, we are implementing further price rises, and remain focused on improving our productivity.
I’m confident in our strategy and the actions we’re taking to deliver sustainable long-term growth, including investments in people, infrastructure and product innovation.”
About Renishaw
We are a world leading supplier of measuring and manufacturing systems. Our products give high accuracy and precision, gathering data to provide customers and end users with traceability and confidence in what they’re making. This technology also helps our customers to innovate their products and processes. We are a global business, with customer-facing locations across our three sales regions; the Americas, EMEA, and APAC. Most of our R&D work takes place in the UK, with our largest manufacturing sites located in the UK, Ireland and India.
Results presentation and live Q&A session today
See below a video presentation of these results, presented by William Lee, Chief Executive, and Allen Roberts, Group Finance Director. There will be a live audio-only question and answer session with William and Allen at 10:30 BST today. Details of how to register for and access this webcast are available at the following link:
https://attendee.gotowebinar.com/register/3038498618137830494
Questions can be submitted in advance of the webcast either through the webcast platform or to communications@renishaw.com (if sending by email, please submit by 10:00 BST).
A recording of the Q&A session will be made available by Wednesday 20 September 2023 at: www.renishaw.com/investors.
Enquiries: communications@renishaw.com