Profits fall sharply at international advanced engineering firm
Profits have fallen sharply at precision engineering firm Renishaw over the last nine months.
The Gloucestershire company issued a trading update for the last nine months and revealed that profits for the full year will be at the lower end of expectations.
Revenue for the nine-month period was £502.9m, compared to £522.0m for the corresponding period last year, representing a 4% reduction at reported exchange rates.
Adjusted profit before tax for the nine-month period was £86.8m compared to £111.8m for the same period last year.
The firm said the fall in profit is largely due to the impact of currency and increased employee pay, including £2.1m of severance costs.
The company said it continues to deliver a solid performance in mixed market conditions, with growth from capital goods products and the early signs of recovering demand from semiconductor equipment builders.
Renishaw expects the recent improvement in trading performance to strengthen in the remainder of the financial year, as market conditions improve.
The company continues to realise the benefits from a range of targeted growth opportunities.
To support its growth strategy Renishaw said it will continue to focus on productivity and to make targeted investments in people, production facilities, and its new product pipeline.
The statement added: “In our interim statement released 6 February 2024 we communicated that we expected full year revenue to be in the range of £675m to £715m and adjusted profit before tax to be in the range of £122m to £147m. We now expect revenue to be in the range of £680m to £700m and adjusted profit before tax to be in the range of £122m to £135m.”
