Renishaw engineering a steady recovery - and a 600 per cent increase in profits!

Despite challenging trading conditions Gloucestershire engineering business Renishaw is finding growth in some sectors and a dramatic increase in profits.

By Andrew Merrell  |  Published

Engineering success story Renishaw said it remained confident after half year results showed growth in some areas of its business and a surge in profit before tax.

Figures just published for the Wotton-under-Edge-headquartered business for the six months to December 31 show a fall in revenues to £255.1 million from £259.4 million for the same period the previous year.

But profit for the half year rose from £7.3 million for the same period in 2019/20, to £52.4 million – a 600 per cent plus increase.

‘The board remains confident in the long-term prospects for the group due to its strong financial position, the high quality of our people, our innovative product pipeline, extensive global sales and marketing presence and relevance to high-value manufacturing,’ said a joint statement from chief executive Will Lee, executive chairman Sir David McMurtry and group finance director Allen Roberts.

‘Whilst the trading environment remains uncertain as a result of the pandemic, we currently have a strong order book, and we are well placed to take advantage of the opportunities presented by any recovery in the global economy.

‘At this stage, we expect full year revenue to be in the range of £515 million to £545 million. Adjusted profit before tax is expected to be in the range of £85 million to £105 million.’

Its last full year results revealed revenue had fallen from £574 million to £510 million and the firm had been forced to make redundancies.

But it has invested in a base in Ireland to help mitigate Brexit and while its markets, especially aerospace, are ‘still being impacted by the pandemic’, there was growth in healthcare with revenue 10 per cent higher at £19.5m.

Demand remained ‘weaker’ in Europe and the Americas, according to the firm, but there was ‘good revenue growth’ in the firm’s Asia-Pacific markets.

In January it was also delivering the good news that it planned to create 180 new traineeships, apprenticeships and placements . The deadline for applications for which is Friday 19 February.

By Andrew Merrell

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