12th Sep 2024 10:14
(Alliance News) - Renishaw PLC on Thursday said its full-year profit fell for financial 2025, but improving demand has led to predictions of revenue growth for the following year.
The Gloucestershire, England-based provider of manufacturing technologies, analytical instruments and medical devices said pretax profit for the year ended June 30 fell 16% on-year to GBP122.6 million from GBP145.1 million. Revenue rose 0.4% to GBP691.3 million from GBP688.6 million.
Renishaw declared a final dividend per share of 59.40 pence. Its total dividend per share remained unchanged at 76.20p.
Revenue for manufacturing technologies remained flat at GBP648.1 million, with "record" revenue for shop-floor gauging and co-ordinate measuring machine inspection systems, but weaker demand for position measurement products overall, Renishaw said. It added, though, that all four quarters showed signs of sequential growth amid recovering demand from the semiconductor sector.
Revenue for analytical instruments and medical devices increased 7.2% to GBP43.2 million, with record sales for the company's spectroscopy product line and growth in the neurological product line.
The reduction in profit resulted primarily from the impact of currency on revenues; increased employee pay, including GBP2.1 million in severance costs; increased gross engineering expenditure as it continues to invest in innovation, as well as distribution costs rising 1.6% higher.
Chief Executive Will Lee said: "The start of financial 2025 has seen continuing improvement in demand for our encoder products from the semiconductor manufacturing sector, primarily in the Asia-Pacific region. This, together with a range of growth opportunities that we are pursuing, especially for metrology and additive manufacturing systems, means that we are expecting to achieve solid revenue growth in the year ahead.
"We continue to focus on improving productivity in all areas. We expect these efforts, together with higher sales volumes, to drive our operating profit margin towards our target, although inflationary pressures, especially people costs, will affect the rate of improvement in the near term. The progress we've made against our three key strategic focus areas this year gives me confidence in our organic growth strategy, and we continue to invest for long-term success."
Shares in Renishaw were up 2.0% at 3,365.00 pence each in London on Thursday morning.
By Emily Parsons, Alliance News reporter
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