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Renishaw plc (LSE:RSW) has reported its financial results for the year ended 30 June 2024, delivering record revenue of £691.3 million, slightly up from £688.6 million in FY2023. The company’s revenue growth, though modest at 0.4%, was bolstered by a strong final quarter, as well as notable gains in its systems sales and analytical instruments and medical devices division.
Revenue Performance and Sector Highlights
Renishaw's overall revenue was influenced by contrasting performances across its business segments. While revenue from manufacturing technologies remained flat at £648.1 million, the Group’s analytical instruments and medical devices division saw an impressive 7% increase, reaching £43.2 million.
Manufacturing Technologies:
- Revenue growth in manufacturing technologies was largely offset by weaker demand from the semiconductor sector, particularly for Renishaw’s Position Measurement products. However, despite this, the company saw record revenue in other areas, such as shop-floor gauging and co-ordinate measuring machine (CMM) inspection systems.
- Multi-laser additive manufacturing (AM) systems performed well, especially in the second half of the year, driven by strong sales to key customers in the medical sector.
- Demand for Position Measurement products showed signs of recovery, with four consecutive quarters of sequential growth, suggesting a gradual rebound from the semiconductor sector’s downturn.
Analytical Instruments and Medical Devices:
- The company’s Spectroscopy product line achieved record sales, particularly in the Europe, Middle East, and Africa (EMEA) region, where Renishaw expanded its sales team to capture increased demand.
- Neurological product sales also grew, with the neuromate® surgical robot playing a key role in diagnosing patients with epilepsy. This product line continues to be a growth driver for the company as it capitalizes on the expanding medical robotics sector.
Profitability and Investments
Renishaw’s statutory profit before tax for FY2024 was £122.6 million, down from £145.1 million in the previous year. This decline in profit was partly due to mixed demand in the semiconductor sector, which impacted overall margins. However, Renishaw’s strong cash position, with cash and bank deposits totalling £217.8 million as of 30 June 2024, reflects the company’s resilience and financial health.
The company invested £65.2 million in capital expenditure during the year, slightly lower than the £73.8 million invested in FY2023. A key highlight of this investment was the completion of the first phase of expansion at Renishaw’s production facility in Miskin, Wales, which underscores the company’s commitment to enhancing its manufacturing capabilities for future growth.
