16th Oct 2014 09:27
LONDON (Alliance News) - Renishaw PLC Thursday expressed confidence that it will have a "successful year" after revealing that pretax profit more than doubled in its fiscal first quarter.
In a statement ahead of its annual general meeting, the metrology and healthcare products manufacturer said its pretax profit for the three months to end-September rose to GBP21.3 million, from GBP10.6 million a year earlier, even though exchange rate movements knocked GBP3.3 million off this year's figure.
It had previously reported that first quarter revenue increased 28% to GBP101.4 million, from GBP79.0 million a year before.
The company said Thursday its cost base has grown to provide capacity for its immediate future and longer-term growth. During the quarter it saw 60% growth in the Far East, 10% in the Americas and 4% in Europe. In the UK it saw a 27% increase in revenue.
Its Metrology business saw growth in its machine tool products line, and further larger orders and revenue from the Far East. In its healthcare business it saw growth in its neuro and dental products, although its spectroscopy products saw order delays in the quarter. These delays are likely to hit revenue in the first half, although it expects growth for the full year.
Renishaw said that its revenue growth trend is expected to continue into the second quarter, and whilst it might see "unpredictable orders both in terms of size and timing" it continues to expect greater demand for its products.
As a result, it will continue to invest in its research and development, production, marketing and distribution infrastructure.
Renishaw had net cash balances of GBP44.3 million as at September 30, compared with GBP30.2 million a year before, after expenses of GBP10.5 million in the first quarter. This expenditure includes the purchase of an additional 57,000 square foot premises for its Irish subsidiary, and the continued construction of a 153,000 square foot facility at its headquarters.
Shares in Renishaw are trading up 3.2% at 1,598.00 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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