Renishaw PLC — Earnings Release 2018

Oct 20, 2017

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RNS Number : 2022U

Renishaw PLC

20 October 2017

Renishaw plc

Trading update

20th October 2017

Ahead of the AGM being held at noon today, we are providing a short trading update as follows:

Renishaw plc, the global high-precision metrology and healthcare manufacturer, publishes this trading update for the three months ended 30th September 2017. It contains unaudited information that covers the first quarter and the period since.

Trading activity

# Continuing operations	# First quarter 2018	# First quarter 2017	# Change
# Metrology	# £137.1m	# £108.9m	# +26%
# Healthcare	# £5.2m	# £4.0m	# +30%
# Total Revenue	# £142.3m	# £112.8m	# +26%
Adjusted* Profit before tax	# £35.8m	# £15.1m	# +137%
# Statutory Profit before tax	# £36.9m	# £10.7m

Revenue from continuing operations for the first quarter of the current financial year was £142.3m, a growth of 26% over the £112.8m for the corresponding period last year. Revenue benefited due to a number of large orders from Far East customers in the consumer electronics markets. We experienced underlying growth at constant exchange rates of 20% with growth in all regions.

In our metrology business revenue amounted to £137.1m compared to £108.9m last year, with an underlying growth at constant exchange rates of 20%. Revenue in our healthcare business was £5.2m compared with £4.0m last year, a growth of 29% at constant exchange rates.

Restated and adjusted* profit before tax from continuing operations for the first quarter amounted to £35.8m compared with £15.1m last year.

Financial position

The Group balance sheet remains strong with net cash balances of £82.6m as at 30th September 2017 (30th June 2017: £64.8m), including an escrow account of £12.9m (30th June 2017: £12.9m) which provides additional security for the UK defined benefit pension scheme.

Outlook

The Board remains confident in the future prospects of the Group and of achieving good growth in both revenue and profit in this financial year.

The results for the half year ending 31st December 2017 will be released on 25th January 2018.

Sir David McMurtry

CBE, RDI, FRS, FREng, CEng, FIMechE

Chairman and Chief Executive

20th October 2017

Renishaw plc

Registered office            New Mills, Wotton-under-Edge, Gloucestershire, GL12 8JR

Registered number         1106260

LEI number                    21380048ADXM6Z67CT18

Telephone number          01453 524524

Website                        www.renishaw.com 

*    Adjusted profit before tax and prior year restatements

In the trading update issued on 13th October 2016, the profit before tax for the first quarter of the financial year 2016 was reported as £14.1m. The results of Renishaw Diagnostics Limited and the spatial measurement business have now been excluded as these businesses have been reclassified as discontinued activities, giving rise to an increase in profit before tax of £1.0m.

The adjustment to statutory profit relates to the accounting treatment of certain forward currency contracts used as hedging instruments which do not qualify for hedge accounting as they do not meet the hedge effectiveness criteria set out in the International Accounting Standard IAS39 'Financial Instruments: Recognition and Measurement'. The board deems that the adjusted profit before tax better reflects the underlying performance of the Group. The following table reconciles statutory profit before tax to adjusted profit before tax:

£'m	Q1 2018		Q1 2017
Profit before tax as reported Oct 2016			14.1
Restatement for discontinued operations			1.0
Restated adjusted profit before tax from continuing operations	35.8		15.1
Fair value gains/losses on financial instruments not eligible for hedge accounting
-     reported in revenue	0.1		2.1
-     reported in losses from the fair value of financial instruments	1.0		(6.5)
Restated statutory profit before tax from continuing operations	36.9		10.7

This information is provided by RNS

The company news service from the London Stock Exchange

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