Engineering giant Renishaw has reported a 10% drop in profits amid continued “subdued” demand for its semiconductor and consumer electronics products.
The FTSE 250 firm, which is based at Wotton-under-Edge in Gloucestershire, reported adjusted profit before tax in the nine months to March stood at £111.8m, compared to £124m a year earlier.
That was despite the firm seeing revenue rise to £522m, up by around £30m on figures recorded for the same period during its 2022 financial year.
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The company said the growth was driven by its manufacturing technologies business, where “strong systems sales” had contributed to 6% growth in its industrial metrology and 3D printing markets. Revenue generated by its analytical instruments and medical devices remained stable, marginally increasing to £25.3m
In a trading update to investors on the London Stock Exchange, bosses said the group had invested in growing customer facing activities this year, while increased operating costs also reflect pay reviews undertaken in the last two years.
The board said it expected current market conditions to continue for the remainder of the current financial year, and forecast full year revenue to be between £680m and £700m, and adjusted profit before tax at around £135m to £150m.
Last year Renishaw reported record results as revenue rocketed to more than £670m, with pre-tax profits of £163.7m, driven by a high demand for encoders among its global client base. In February, the 50-year-old business said customers had reduced stock levels due to improved supply chain lead times.
In its latest update the group said its balance sheet remained “strong” with cash and cash equivalents and bank deposits amounting to £227.8m. Renishaw will publish its full-year preliminary results on September 14.
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