Renishaw sees solid revenue and profit growth in its first quarter

Gloucestershire-headquartered Renishaw said it had seen solid revenue and profit growth in the first quarter of fiscal 2025 amid mixed trading conditions.

The global provider of manufacturing technologies, analytical instruments and medical devices, added that it was pursuing a "range of growth opportunities" and expects "solid" overall revenue growth this year.

In the three months to September 30 (Q1 FY25), the firm posted total revenue of £173.9 million (m), up 6% from £164.5 million in the first quarter of fiscal 2024.

Statutory pre-tax profit came in at £34 million, up 22% on the year-earlier quarter, which stood at £28 million.

The Americas and EMEA regions saw increased demand compared to Q1 FY2024, said Renishaw, while Asia-Pacific (APAC) was lower compared to a strong period last year.

In the manufacturing technologies business, revenue in the first quarter was 7% higher than the prior year at £167.5 million.

Sales of position encoders to the semiconductor manufacturing sector saw strong growth, while the additive manufacturing products also grew strongly, reflecting the good order book carried into FY2025, the company also noted.

Meanwhile, demand for industrial metrology products was lower than last year, mainly due to the strong prior period sales to consumer electronics manufacturers in APAC.

Revenue for Renishaw's analytical instruments and medical devices business came in at £6.4m, a decrease of 16% compared with £7.7m last year, the firm said, mainly from phasing for the group's spectroscopy products.

"The first quarter of FY2025 has seen solid revenue and profit growth in mixed trading conditions, with subdued demand in some markets, offset by good growth elsewhere.

"Whilst Q1 sales of our encoder products to the semiconductor manufacturing sector have been stronger than last year, we remain cautious about demand from this market in the remainder of FY2025," the company said in the statement.

"We continue to pursue a range of growth opportunities and anticipate solid overall revenue growth this year in line with the board's expectations.

"Alongside this we also remain focused on the careful management of costs and delivery of productivity improvements, which together will help drive progress towards our margin objectives."

The company's net cash and equivalents and bank deposit balances stood at £276.1m on September 30 this year, compared to £217.8m at the end of June.