Renishaw’s (RSW) full-year results slumped beneath its own (reduced) target for the period, delivering revenues of £572m against a target range of £580m to £600m issued in May, which was its second profit warning in two months.
The specialist in ‘metrology’ systems (measuring equipment) and healthcare products saw Asia Pacific revenues contract 19 per cent on the prior year, with metrology turnover down 7 per cent owing to a slowdown in demand for encoder and machine tool products in the region. A drop-off in demand for the latter was attributed to weaker smartphone orders, which caused over-capacity in the supply chain. Renishaw’s healthcare division fared better, growing its revenue by 15 per cent over the period, although these only made up 7 per cent of its overall sales. Renishaw’s statutory pre-tax profits fell 29 per cent to £109.9m.
The period also saw Renishaw agree to more than double its cash contributions to its pension scheme, raising its annual commitment from around £4m to £8.7m for the next five years