With such a stark fall in turnover it's curious as to why shares in precision engineer Renishaw (RSW) rose 7 per cent on results day. Management said in the previous year it had received a number of large orders from customers in the Far East, which generated "exceptional growth" in its metrology business, which provides products that help customers calibrate and inspect their machines and components. Adjusting for this, revenue rose 4 per cent on a constant-currency basis, which clearly pleased the market.
The group's other division, healthcare, is small in comparison, but revenue there rose 3 per cent to £28.4m due to growth in its medical, dental and neurological products. However, engineering costs of £9m meant the division suffered an operating loss of £6.4m. Management said it "remained focused" on moving this business sector into profit.
Capital expenditure on property, plant and equipment for the year hit £53m but did include new premises for Renishaw's US headquarters near Chicago. The group said it would continue to invest for the long term, having established new sales and marketing subsidiaries in Denmark, Finland and Hungary during the year.
Analysts at broker Numis Securities expect EPS of 115p for the year to June 2017 compared with 94.9p in FY2016.
| RENISHAW (RSW) | ||||
|---|---|---|---|---|
| ORD PRICE: | 2,428p | MARKET VALUE: | £1.77bn | |
| TOUCH: | 2,427-2,438p | 12-MONTH HIGH: | 2,512p | LOW: 1,577p |
| DIVIDEND YIELD: | 2% | PE RATIO: | 26 | |
| NET ASSET VALUE: | 528p | NET CASH: | £21.3m | |
| Year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 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 |
| 2016 | 437 | 80.0 | 94.9 | 48.0 |
| % change | -12 | -44 | -43 | +3 |
Ex-div: 15 Sep Payment: 17 Oct | ||||
