Profits slump at engineering firm Renishaw by 23 per cent

Profits have fallen by almost a quarter in the last six months at Gloucestershire engineering firm Renishaw.

The precision engineering firm said profits have been hit by rising costs, increased wages and variations in international currency rates.

The firm said revenues fell by five per cent to just over £300m.:

Adjusted profit before tax for the first half of the year was £56.5m down from £73.5m from the previous year.:

There was a  three per cent reduction in gross margin before engineering costs: targeted price rises, offset by adverse currency impact on revenue, employee pay inflation, and lower production overhead absorption due to planned inventory reductions.

Statutory profit before tax was £56.5m compared to £77.8m in the same period last year.

Chief executive William Lee 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.”