Semiconductor demand boosts Renishaw’s profits
Precision engineering firm Renishaw increased first-quarter profits by 22%.
The upbeat update, revealing pre-tax profits of £34m at the Gloucestershire-based company, is a change from a challenging year. Revenues for the period were up 6% to £173.9m.
It said ales of position encoders to the semiconductor manufacturing sector saw strong growth after a subdued performance last year. However the company told the stock market it is “cautious” about the strength of this demand for the rest of this year.
Renishaw said: “The first quarter of FY2025 has seen solid revenue and profit growth in mixed trading conditions, with subdued demand in some markets, offset by good growth elsewhere.
“Whilst Q1 sales of our encoder products to the semiconductor manufacturing sector have been stronger than last year, we remain cautious about demand from this market in the remainder of FY2025.”
Renishaw’s share price is trading at a year-low, having lost 25% of its value since March. Last night’s closing price of 3,242p valued the business at £2.4bn.
