Renishaw sees profits fall in first half of year

ENGINEERING giant Renishaw has seen pre-tax profit fall in the first half of the year amid “challenging market conditions”.

The Gloucestershire-based company reported yesterday that pre-tax profit for the six months ending December 31 had dropped 23% to £56.5m, compared with £77.8m the previous year.

Revenue at the London-listed firm was also 5% lower at £330.5m over the period.

Manufacturing technologies revenue was lower by 6%, with growth in industrial metrology offset by weak demand for semiconductor manufacturing equipment.

Meanwhile, analytical instruments and medical devices revenue was up 16%, with strong growth in spectroscopy products. Overall group revenue was lower by 2% at constant currency.

Renishaw told the stock market it expects full-year revenue to be in the range of £675m to £715m, while adjusted profit before tax is expected to be in the range of £122m to £147m.

William Lee, chief executive, said: “We have achieved a solid performance in challenging market conditions, with growth from industrial metrology products in APAC being offset by continued weak demand from some key sectors, most notably semiconductor equipment.

“We expect an improvement in our trading performance in the second half of the financial year as market conditions improve, and as we continue to pursue a range of growth opportunities.

“To support our through-cycle growth strategy, we are continuing to focus on productivity and to make targeted investments in our people, our production facilities and our new product pipeline.”

Renishaw reported cash and cash equivalents and bank deposit balances of £178.3m, compared with £206.4m at June 30, 2023, with the £43.2m final dividend for the full-year 2023 paid in the first half of the financial year.

The company also announced an interim dividend of 16.8p per share.