Shares in precision engineering group Renishaw (RSW) jumped 7 per cent following an impressive set of full-year results. The group posted record pre-tax profit thanks to growing demand for its machine tool products as well as rapid growth in the Far East. Operating profit more than doubled to £144m.
The group's core metrology business, which produces tools including laser measurement and surveying systems and optical encoders, generated revenue growth of 43 per cent last year. Total engineering costs for the segment came to £55m, as the group continued to invest in its manufacturing facilities in the UK, Ireland and India.
However the performance of the group's healthcare division was more subdued. Revenue fell 4 per cent to £27.7m, as spectroscopy sales were hit by delayed academic research funding in some territories, in addition to sterling strength. However, the neurological product lines performed much better. The neuromate surgical robot was launched in the US, following authorisation from the FDA at the end of last year. The business also entered into a partnership with implant dentistry group DENTSPLY Implants, which will see them purchase Renishaw's dental manufacturing products.
Following these figures, Numis anticipates a 5 per cent downgrade to its 2016 EPS forecast from 113.2p to about 107p.
RENISHAW (RSW) | ||||
|---|---|---|---|---|
| ORD PRICE: | 2,099p | MARKET VALUE: | £1.5bn | |
| TOUCH: | 2,098-2,102p | 12-MONTH HIGH: | 2,671p | LOW: 1,520p |
| DIVIDEND YIELD: | 2.2% | PE RATIO: | 13 | |
| NET ASSET VALUE: | 592p | NET CASH: | £82.2m | |
| Year to 30 June | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 289 | 82.1 | 90.8 | 35.0 |
| 2012 | 332 | 86.0 | 95.6 | 38.5 |
| 2013 | 347 | 82.1 | 92.9 | 40.0 |
| 2014 | 355 | 96.4 | 118 | 41.2 |
| 2015 | 495 | 144 | 168 | 46.5 |
| % change | +39 | +50 | +41 | +13 |
Ex-div: 17 Sep Payment: 19 Oct | ||||
