Global engineering and manufacturing giant Renishaw has confirmed its decision to cease trading with Russia will cost it £2 million, but the Gloucestershire firm predicts turnover for 2022 to be as high as £675 million, with profits potentially reaching £170 million.
It said it had immediately stopped the supply of goods to Russia and to Belarus as a result of the ‘Ukraine crisis’ and was now ‘in the process of ceasing its trading operations in Russia’ altogether.
The FTSE 250 firm made the statement in its just-released trading statement for the nine months to the end of March 2022, reporting a 21 per cent rise in revenues for that period to £492 million.
Adjusted profit before tax rose 47 per cent to £124 million, said the firm – which serves sectors as diverse as medical and aerospace to precision manufacturing and energy and employs 2,200 across five sites in Gloucestershire.
‘We continue to see a strong demand for our product lines and have a strong order book. The board remains confident in our long-term prospects,’ said the Wotton-under-Edge-headquartered business.
Although total headcount only increased from 4,975 to 5,004 across the business, ‘extensive salary benchmarking exercises’ resulted in ‘around £5m of additional annual labour cost’ as the firm looked to retain its existing teams.