Strong final quarter boosts precision engineering firm’s revenue
Precision engineering firm Renishaw has posted a 4% rise in revenue on the back of a strong final quarter.
In its preliminary results for the year ended 30 June 2024, the Gloucestershire company reported revenue of £691.3m, up from £688.6m in the prior period.
The company also posted a 13% drop in pre-tax profits but added it has made ‘solid, strategic progress’ in challenging market conditions.
Adjusted profit before tax 13% lower at £122.6m from £141m, which was attributed to a combination of the impact of currency on revenues and increased employee pay, including £2.1m of severance costs, while gross engineering expenditure increased by 6% as it continued to invest in innovation.
Looking ahead, the company said it will focus on growing in its existing markets, increasing the value of the technology it sells and extending into new, high-growth markets.
Will Lee, chief executive, said: “The start of FY2025 has seen continuing improvement in demand for our encoder products from the semiconductor manufacturing sector, primarily in the APAC 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.”
