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A rare UK innovator available at a good price

After some tough years, this quality business is starting to emerge from its depressed valuation
October 5, 2023

Last month, an underwhelming set of full-year numbers cast a shadow over what should have been a banner year for Renishaw (RSW).

Tip style
Growth
Risk rating
Medium
Timescale
Medium Term
Bull points
  • A true UK innovator
  • Well-placed for chip market recovery
  • Shares trade at a discount
  • A growth strategy
Bear points
  • Labour costs have soared
  • Governance grumblings
  • Elevated capex spending

The company celebrates its 50th birthday this year, and executive chairman Sir David McMurtry reminisced in his results commentary about how he and co-founder John Deer started out in the latter’s house, using underlay from McMurtry’s carpets as dust seals.

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