Ren­ishaw axes al­most 600 jobs as global Covid shut­downs add to com­pany’s woes

The Daily Telegraph - Business - - Business -

◆ En­gi­neer­ing firm Ren­ishaw has axed al­most 600 jobs af­ter a col­lapse in prof­its as the strug­gling firm’s woes were wors­ened by coro­n­avirus, writes Alan Tovey.

The cuts – which equal 10pc of the com­pany’s work­force – came af­ter de­mand for its mea­sur­ing and cal­i­bra­tion equip­ment fell in the Far East over au­tumn.

Global Covid shut­downs then piled on fur­ther pres­sure.

An­nual prof­its crashed 97pc to £3.2m in the year to June, with rev­enues down 11pc at £510m. The FTSE 250 com­pany had £120m of cash avail­able, but has can­celled its in­terim and fi­nal div­i­dends to bol­ster re­serves.

The profit fall was partly driven by re­struc­tur­ing costs as 578 work­ers were laid off, tak­ing the head­count down to 4,463.

Ren­ishaw’s largest arm – the metrol­ogy di­vi­sion – was hit hard by ten­sions be­tween the US and China, which pushed down de­mand for ma­chine tools.

Shares fell more than 10pc to £47.48.

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