Technology company, Renishaw has reported record results for the first half year for both revenue and profits before tax .
Sir David McMurtry, chairman and chief executive reported that revenue for the six months ended 31st December 2012 was £174.2m, up 18% on the £147.1m for the corresponding period last year. Whilst revenue in the first quarter was up 36%, from £70.5m to £95.9m, helped by a more than doubling of revenue to the Far East, specifically China, growth in the second quarter was, as expected, lower with revenue growing 2%, from £76.6m to £78.3m.
Geographically, the company saw good growth in the Far East where revenue increased by 59% over the comparable period, from £49.5m to £78.6m. In our other major regions, revenue in the Americas was down 1%, from £36.5m to £36.1m and in Europe was down 7%, from £47.1m to £44.0m. The UK, a smaller segment in absolute amount, grew 16%, from £8.7m to £10.0m.
The Group's adjusted profit before tax for the second quarter, excluding an exceptional gain of £2.9m (referred to below), was £15.0m compared to £17.5m in the previous year, resulting in an adjusted profit before tax for the first half of £43.3m, 39% above the £31.2m reported last year; the statutory profit before tax was £46.2m. Adjusted earnings per share were 47.9p, compared with 34.7p last year, an increase of 38%. Statutory earnings per share were 51.9p.
Revenue from Renishaw's metrology business for the first six months was £162.5m, compared with £135.9m last year, an increase of 20%. Sir David said that operating profit for the metrology business was £46.2m, compared with £35.7m for the comparable period last year, an increase of 30%.
With the exception of more recent acquisitions, Measurement Devices Limited ("MDL") and the Renishaw additive manufacturing products division, all traditional metrology product lines reported revenue growth. This growth was primarily driven by Renishaw's machine tool product line and good growth in encoder products, where the company is seeing a recovery in investments into the electronic and semiconductor markets, especially in the Far East.
Sir Davaid said that in the first quarter the Group benefited from a number of large orders in China in the consumer electronics market. Such irregular orders produce a distorting effect when comparisons are made between periods. It is difficult to predict with certainty the size and timing of forthcoming orders above and beyond the customary underlying order book which remains at approximately one month's revenue. The Group also faces tough financial comparators during the second half of this financial year given the strong trading conditions in the prior year, particularly in the fourth quarter. The directors therefore currently expect that revenue in the second half will be around the level in the second half of last year.
Renishaw's markets continue to exhibit attractive, long-term structural growth drivers with continuing global investment in production systems and processes. Despite continuing global economic uncertainties and short-term fluctuations in activity levels, Sir David said that the company continues to invest in the business with confidence to position it for sustainable long-term growth.