Profits slump by 30 per cent at Gloucestershire manufacturer

Profits have fallen by over 30 per cent in the last three months at advanced manufacturer Renishaw.

The company, which is one of Gloucestershire’s biggest employers, has been hit by the global economic downturn.

Renishaw provides manufacturing technologies, analytical instruments and medical devices to firms across the globe.

It has published a trading update for the three months ended 30 September 2023.

The company said total revenue fell by nine per cent to £164.5m. Profit before tax fell by 30 per cent to £28m.

All regions saw reduced demand compared to Q1 FY2023. Whilst there was modest growth for the Industrial Metrology area of the business, revenues for our Position Measurement products were substantially below a strong period last year.

However, compared to Q4 FY2023, revenue was one per cent lower at constant currency, with no significant changes to market conditions.

In the Manufacturing technologies business, revenue amounted to £156.8m, compared to £172.8m last year.

Revenue for the Analytical instruments and medical devices business was £7.7m, an increase of eight per cent compared with £7.1m last year.

The company said: “Trading conditions remain challenging due to subdued demand, most notably from the semiconductor sector. We continue to see positive investment trends in robotics, defence, low emission transportation and additive manufacturing.

“We continue to carefully manage costs, implement targeted price rises and focus on productivity improvements.

“Our investments in product innovation, infrastructure, and people leave us well-positioned to benefit from a recovery in our markets. We are confident in our strategy to deliver sustainable long-term growth.”