Renishaw’s (RSW) wooing of its customer base is having the desired effect. Strip out the impact of currency fluctuations and the precision engineer, a provider of high-tech tools designed to help manufacturers maximise production output, broke new records once again, growing constant currency sales by 18 per cent and adjusted pre-tax profit by a third to £145m. The group registered double-digit growth all over the world, and growth across all of its product lines. Impressively, Renishaw also managed to double its net cash position, despite rolling out a series of new design launches.
The precision engineer’s main area of expertise lies in the science of measurement, a process designed to assist the increasing number of manufacturers choosing to automate their production lines. Robust demand for measurement and automation, co-ordinate measuring machine, machine tool and additive manufacturing solutions saw the group’s core metrology unit post a 14 per cent rise in revenues. Renishaw’s smaller healthcare division also put in a decent shift, turning a profit for the first time in the 2018 financial year. Management credited this success to its restructuring of the business and healthy appetite for neurological products.
Prior to the publication of these results, Panmure Gordon forecasted adjusted pre-tax profit of £190m for the year to June 2019, giving EPS of 191p, up from £165m and 168.5p in FY2018.
| RENISHAW (RSW) | ||||
| ORD PRICE: | 5,580p | MARKET VALUE: | £4.06bn | |
| TOUCH: | 5,578-5,582p | 12-MONTH HIGH: | 5,820p | LOW: 3,955p |
| DIVIDEND YIELD: | 1.1% | PE RATIO: | 31 | |
| NET ASSET VALUE: | 754p | NET CASH: | £104m | |
| Year to 30 June | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2014 | 355 | 96.4 | 118 | 41.2 |
| 2015 | 495 | 144 | 168 | 46.5 |
| 2016 | 427 | 61.7 | 71.8 | 48.0 |
| 2017 | 537 | 117 | 141 | 52.0 |
| 2018 | 612 | 155 | 182 | 60.0 |
| % change | +14 | +33 | +29 | +15 |
| Ex-div: | 20 Sep | |||
| Payment: | 23 Oct |
