Renishaw PLC today announced its full-year profit dropped for the full year ending June 30th 2024, but improving demand has led to predictions of revenue growth for the following year.
The technology company with headquarters near Wotton-under-Edge and sites in Stonehouse and Woodchester, reported its pre-tax profit for the year ending June 30 decreased by 16 percent to £122.6 million from £145.1 million. Meanwhile, revenue saw a marginal increase of 0.4 percent, reaching £691.3 million up from £688.6 million.
Revenue for analytical instruments and medical devices increased 7.2 percent to £43.2 million, with record sales for the company’s spectroscopy product line and growth in the neurological product line.
The reduction in profit resulted primarily from the impact of currency on revenues; increased employee pay, including £2.1 million in severance costs; increased gross engineering expenditure as it continues to invest in innovation, as well as distribution costs rising 1.6 percent higher.
Chief Executive Will Lee said: “The start of financial 2025 has seen continuing improvement in demand for our encoder products from the semiconductor manufacturing sector, primarily in the Asia-Pacific region.
“This, together with a range of growth opportunities that we are pursuing, especially for metrology and additive manufacturing systems, means that we are expecting to achieve solid revenue growth in the year ahead.
“We continue to focus on improving productivity in all areas. We expect these efforts, together with higher sales volumes, to drive our operating profit margin towards our target, although inflationary pressures, especially people costs, will affect the rate of improvement in the near term. The progress we’ve made against our three key strategic focus areas this year gives me confidence in our organic growth strategy, and we continue to invest for long-term success.”
Shares in Renishaw today climbed by two percent to 3,365.00 pence each.
