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Renishaw misses profit warning target

The measuring systems specialist fared better in healthcare
August 1, 2019

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.

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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