Renishaw resumes dividend payments as turnaround continues
Adjusted profit before tax in the six months to December 31, 2020, rose to £49.2mln from £15.1mln the year before on revenue that eased to £255.1mln from £259.4mln.
Statutory profit before tax jumped to £63.9mln from £9.9mln the previous year, resulting in earnings per share rising to 72.1p from 10.2p in the same period of 2019.
The board expects full-year revenue to be in the range of £515mln to £545mlb. Adjusted profit before tax is expected to be in the range of £85mln to £105mln.
The group has resumed dividend payments, starting with an interim dividend of 14p.
The group said all of its manufacturing facilities are operating as normal and despite many challenges, supply to customers has been maintained throughout the pandemic.
To mitigate against the potential impacts of the UK leaving the EU Renishaw has established a warehouse in Ireland, expanded the existing warehouse in Germany and increased the inventory of certain finished goods and components at sites within the EU and the UK.
Although there have been some delays at the UK borders for shipments into the EU since the beginning of the year, the measures taken have reportedly minimised the impact on customer service.
The board remains confident in the long-term prospects for the group.
“Whilst the trading environment remains uncertain as a result of the pandemic, we currently have a strong order book, and we are well placed to take advantage of the opportunities presented by any recovery in the global economy,” the company said in its interim report.
Renishaw shares were unchanged on the update, the market having wised up to the recovery play, with the shares rising from 2,428p on March 20 (around the time of the first UK lockdown) to 6,120p this morning.