Renishaw plc

Trading update

28 April 2023

Revenue growth achieved despite lower demand from the semiconductor and electronics sectors.

Renishaw plc, the global provider of manufacturing technologies, analytical instruments and medical devices, publishes this trading update for the nine months ended 31 March 2023. It contains unaudited information that covers the first nine months of the financial year and the period since.

Trading activity

Revenue for the nine months to 31 March 2023 was £522.0m, an increase of 6% compared to £492.4m for the corresponding period last year.

In our Manufacturing technologies business, revenue for the first nine months was £496.7m, compared with £467.4m last year. Strong systems sales have contributed to growth in our industrial metrology and additive manufacturing business. Our position measurement business has continued to see subdued demand from the semiconductor and electronics sectors in the third quarter, resulting in lower revenue this year compared to last year. Revenue from our Analytical instruments and medical devices business for the first nine months was £25.3m compared with £25.0m last year.

Adjusted profit before tax for the nine months to 31 March 2023 amounted to £111.8m compared with £124.0m last year and the statutory profit before tax amounted to £117.3m (FY2022: £120.2m). As previously reported, we have invested in increased customer facing activities this year and operating cost increases also reflect pay reviews undertaken in the last two years.

Financial position

The Group balance sheet remains strong with cash and cash equivalents and bank deposits amounting to £227.8m (31 December 2022: £211.5m).

Outlook

We expect current market conditions to continue during the remainder of this financial year. We continue to invest in innovative new products and manufacturing capacity to support our growth objectives, whilst managing costs carefully and focusing on productivity. We anticipate that revenue for the full year will be between £680m and £700m, and adjusted profit before tax will be between £135m and £150m.

The preliminary results for the year ending 30 June 2023 will be released on 14 September.

^* 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'; and

-       third-party costs in the previous year relating to the formal sale process ('FSP') concluded in July 2021.

The Board views the adjusted profit before tax as a useful measure to analyse the underlying performance of the Group. The following table reconciles statutory profit before tax to adjusted profit before tax: