Renishaw PLC Trading Statement (4689M)
October 13 2016 - 4:54AM
UK Regulatory
TIDMRSW
RNS Number : 4689M
Renishaw PLC
13 October 2016
Renishaw plc
Trading update
13th October 2016
Ahead of the AGM being held at noon today, we are providing a
short trading update as follows:
Renishaw plc, the global high-precision metrology and healthcare
manufacturer, publishes this trading update for the three months
ended 30th September 2016. It contains unaudited information that
covers the first quarter and the period since.
Trading activity
Revenue for the first quarter of the current financial year was
GBP112.8m, compared with GBP98.2m for the corresponding period last
year, with growth of 15%. There was growth in all regions,
especially the Far East at 22% (9% at constant exchange rates) and
Europe at 13% (3% at constant exchange rates).
By business sector, revenue in our metrology business increased
by 16% to GBP108.8m compared with GBP93.7m last year, with
underlying growth at constant exchange rates of 7%. Revenue in our
healthcare business was GBP4.0m compared with GBP4.5m last
year.
Profit before tax for the first quarter amounted to GBP14.1m
(including a currency benefit of GBP3.7m) compared with GBP16.3m
last year.
The Group's cost base reflects investments made in the previous
year, including an increase in labour costs supporting global
marketing expansion, further strategic investment in our research
and development programmes and investment in skills for future
growth. Across the Group, we continue to focus on our operating
costs. Exchange rate movements have given rise to higher overseas
operating costs in Sterling terms.
Renishaw Diagnostics Limited ("RDL")
Following an extensive review of the business, the Board has
decided to discontinue operations at RDL, resulting in the 33 staff
directly employed by RDL now being on notice of redundancy.
Significant efforts have been made to find a collaboration or
acquisition partner, however there have been no acceptable offers
to date that could take RDL forward as a going concern. We continue
to look at opportunities for the sale of RDL assets and to support
employees in finding alternative employment. We would like to
express our thanks to the employees of RDL for their considerable
efforts since the company was formed in 2007.
The full carrying value of assets on the consolidated balance
sheet which are at risk of impairment loss, along with estimated
cessation costs, is expected to be in the region of GBP4.9m. The
resultant costs, net of proceeds from asset disposals, will be
reflected in the half year results. The operating costs of RDL in
the 2016 financial year were GBP3.2m.
Financial position
The Group balance sheet remains strong with net cash balances of
GBP27.8m as at 30th September 2016 (30th June 2016: GBP21.3m),
excluding the escrow account of GBP15.3m (30th June 2016: GBP15.3m)
which provides additional security for the UK defined benefit
pension scheme.
Outlook
The Board remains confident in the future prospects of the Group
and, as stated in my statement in July 2016, we continue to
anticipate growth in both revenue and profit in this financial
year.
Sir David McMurtry
CBE, RDI, FRS, FREng, CEng, FIMechE
Chairman and Chief Executive
13th October 2016
Renishaw plc
Registered office New Mills, Wotton-under-Edge, Gloucestershire, GL12 8JR
Registered number 1106260
Telephone number 01453 524524
Website www.renishaw.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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