Engineering giant Renishaw has reported a fall in profits amid weaker demand from the semiconductor and consumer electronics sectors. Updating investors with its half-year results on Thursday (February 2), the Gloucestershire-based London-listed firm said customers had reduced stock levels due to improved supply chain lead times.
The business reported adjusted profit before tax of £73.5m for the six months ending December 31 - down from £84.2m the year previously. However, revenues were up 7% over the period to £347.6m from £335.2m.
Renishaw also said it had experienced "strong growth" in sales of its multi-laser additive manufacturing (AM) systems, five-axis co-ordinate measuring machine (CMM) inspection systems and laser encoders.
William Lee, Renishaw chief executive, said: “I am pleased to report record revenue in a period of expected lower demand from the semiconductor and electronics sectors.
"We have made good progress in our strategy; gaining market share, introducing new products into close-adjacent markets and taking advantage of long-term growth opportunities in additive manufacturing, shop-floor measurement, materials research and semiconductor manufacturing. We continue to invest in our people, product development and infrastructure to deliver sustainable, long-term growth.”
Renishaw reported net cash and bank deposit balances of £211.5m - compared with £253.2m at 30 June 2022 - with the £41.2m final dividend for the financial year 2022 paid in the first half. The company's interim dividend is 16.8p per share.
Last year, Renishaw cut its annual revenue and profit forecast after pulling its operations in Russia and amid uncertainty caused by Covid lockdowns in China.
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