Renishaw has reported its interim results for the first six months of the current financial year ending 30th June 2009. Sir David McMurtry, chairman and CEO, reported that the first quarter of the financial year was encouraging with strong trading results, assisted by the weakness of sterling.
The second quarter of Renishaw’s financial year, however, saw increasing economic and market turbulence, which has had a significant impact on the demand for the group’s products.
Revenue for the six months to 31st December 2008 amounted to £102.7m, an increase of 12% over £91.6m for 2007. However, this revenue increase included an £11.5m exchange rate benefit due to favourable currency movements compared with the previous year, said Sir David. Geographically, at actual exchange rates, Renishaw experienced growth in all their principal markets except the UK. In product terms, there was success in all lines with the single exception of CMM products.
Operating profit amounted to £11.9m, compared with £13.0m in 2007.
Revenues and consequently profitability during the second half are expected to be adversely impacted by the current market conditions, Sir David stated. A voluntary redundancy and part-time working initiative is being introduced as well as strict control over other overheads and capital expenditure. “We do not know how long this depressed demand for many of our products will persist, but fortunately – and as planned – we have no net borrowings. We also continue to invest in our businesses to strengthen our position in our key markets,” said Sir David. “The Directors remain confident of the Group’s longer-term prospects.”
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