Renishaw Plc’s year-end results yesterday fulfilled its mid-year prophecy that pre-tax profits would fall. The chairman was left lamenting the shift in foreign exchange rates, which shrunk profits despite a 9% increase in turnover from last year to UKP48m. The profit before tax dropped by 21% to UKP7.1m while net profit tumbled slightly less by 20% to UKP5m. The company, which bravely maintained dividend of fourpence, saw its earnings per share descend 21% to 10.3 pence. The change in foreign exchange rates particularly affects Renishaw for two reasons; the first is that 90% of the firm’s business is conducted overseas, and the second is that it sold some foreign currency receivables on a forward contract basis before the devaluation of sterling in September 1992. The company claims that the results would have been better by UKP1.3m had the sale been made later. The results were not improved by difficult trading conditions: the German and Japanese markets are very depressed with demand for some customers’ products falling by up to 50%. The company has seen improvements in the Italian, UK and US markets, though, and is hoping that they will continue to prosper, particularly as the US is a key market for it. Renishaw is developing a factory in New Mills which will be occupied at the end of the year. The company has also leased a large proportion of its factory at Cwmbran.
