Renishaw confident of long-term despite weaker orders in some areas

(Alliance News) - Renishaw PLC on Thursday said it was confident of its long-term strategy after seeing revenue growth across all business sectors in its financial first quarter.

Reinshaw is a Gloucestershire, England-based provider of manufacturing technologies, analytical instruments and medical devices.

For the three months ended September 30, the company reported pretax profit of GBP38.6 million, down 2.0% from GBP39.3 million a year prior.

Total revenue for the period was GBP179.9 million, up 14% from GBP157.8 million.

Renishaw said it saw growth across all regions, with particularly high sales in its analytical instruments and medical devices business, where revenue was up 29% to GBP7.1 million from GBP5.5 million.

In its manufacturing technologies business, revenue grew 13% to GBP172.8 million from GBP152.3 million last year.

Renishaw noted that general market sentiment was becoming more cautious, as evidenced by a weakening in order intake from the semiconductor and electronics sectors.

In light of these changes, the company intends to manage costs carefully, focusing on productivity.

Reflecting on growth in the first quarter, it said it had made a "positive start" to the financial year, and was confident in the long-term efficacy of company strategy and investments.

Renishaw reported net cash and bank deposit balances of GBP258.6 million at the end of the quarter, up from GBP253.2 million at June 30.

Renishaw shares were trading 1.2% lower at 3,670.00 pence each in London on Thursday morning.

By Holly Beveridge; [e-mail]

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