# Renishaw plc See massive drop in Q1 revenues

- Link: https://www.directorstalkinterviews.com/renishaw-plc-see-massive-drop-in-q1-revenues/412795409
- Published: 2019-10-15T07:27:45+01:00
- Author: Giles Arbor

**Renishaw plc** (LON: RSW), the global high-precision metrology and healthcare 
technology group, published the following trading update for the three months ended
30th September 2019. It contains unaudited information that covers the first quarter
and the period since.

**Trading activity**

Revenue for the first quarter of the current financial year was £124.6m, compared
to £154.0m for the corresponding period last year.

In our metrology business revenue amounted to £119.7m compared to £147.4m last year.
The first quarter of 2019 benefitted from a number of large orders from end-user
manufacturers of consumer electronic products in the APAC region which have not 
been repeated this year. Furthermore, we have experienced reduced demand for our
products as a result of the challenging global macroeconomic environment.

Revenue in our healthcare business was £4.9m compared with £6.6m last year, due 
to the timing of additive manufacturing machine sales into the healthcare market.

Adjusted* profit before tax for the first quarter amounted to £4.3m compared with
£32.6m last year and the statutory profit before tax amounted to £5.1m (2019: £33.5m).

Adjusted profit before tax includes restructuring provisions of £2m following the
decision to close our additive manufacturing facility at Stone, Staffordshire and
relocate the activities to our Headquarters site at Wotton-Under-Edge, Gloucestershire
and our site at Miskin near Cardiff, South Wales.

**Financial position **

The Group balance sheet remains strong with net cash balances of £98.5m as at 30
September 2019 compared to £106.8m at 30 June 2019.

**Outlook**

As indicated at the time of our full year results in July, trading conditions are
expected to remain challenging through the remainder of this financial year driven
by the global macroeconomic environment.

The Renishaw plc Board believes that the structural demand drivers in our end-markets
remain intact. The Group is in a strong financial position and remains committed
to our long-term strategy of delivering growth through the development and introduction
of innovative and patented products. However, as previously indicated, we are focussed
on improving productivity and we are committed to undertaking further initiatives
to reduce the Group’s cost base.

The results for the half year ending 31 December 2019 will be released on 30 January
2020.

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