Final Results

Renishaw PLC
26 July 2001


Renishaw plc

25th July 2001
Renishaw plc and subsidiary undertakings
Preliminary announcement of results for the year ended 30th June 2001


PROFIT AND LOSS ACCOUNT                                  2001              2000
                                                                       restated
                                                                       (Note 3)
                                                        £'000             £'000

Turnover                                              125,348           105,594
Cost of Sales                                          60,416            50,875
Gross Profit                                           64,932            54,719
Distribution Costs                                     22,321            16,818
Administration Costs                                   14,668            12,224
Operating Profit                                       27,943            25,677
Interest receivable less payable                        2,252             2,384
Other finance income                                      600               200
Profit on ordinary activities before taxation          30,795            28,261
Taxation                                                6,082             7,065
Profit for the financial year                          24,713            21,196
Dividends                                              11,020             9,572
Retained Profit for the financial year                 13,693            11,624

Earnings per share (basic and diluted)                  34.0p             29.1p
Dividend per share                                     15.14p            13.16p



BALANCE SHEET                                                2001          2000
                                                                       restated
                                                                       (Note 3)
                                                            £'000         £'000

Fixed Assets                                               46,075        40,453
Current Assets:
 Stock                                                     22,130        15,309
 Debtors                                                   30,634        27,629
 Cash (net)                                                39,295        39,667
 Creditors due within one year                           (25,540)      (21,425)
Net current assets                                         66,519        61,180
Provisions for liabilities and charges                    (2,952)       (4,945)
Pension (deficit)/surplus                                   (320)           410
Net assets, equal to shareholders' funds                  109,322        97,098




CASH FLOW STATEMENT                                             2001       2000
                                                               £'000      £'000

Net cash inflow from operating activities                     24,471     26,036
Interest received (net)                                        2,180      2,659
Tax paid                                                     (6,407)    (5,634)
Capital Expenditure:
 Purchase of tangible fixed assets (net)                    (10,544)   (11,718)
 Sale of tangible fixed assets                                    83        126
                                                            (10,461)   (11,592)
Dividends paid                                              (10,038)    (8,727)
(Decrease)/increase in cash before exchange rate changes       (255)      2,742
Analysis of changes in cash at bank during the year:
(Decrease)/increase in cash before exchange rate changes       (255)      2,742
Effect of foreign exchange rate changes                        (117)      (666)
                                                               (372)      2,076

Net cash at bank at 1st July 2000                             39,667     37,591
Net cash at bank at 30th June 2001                            39,295     39,667



TURNOVER ANALYSIS BY COUNTRY    2001        2000                  2001 at 2000
                               £'000       £'000                exchange rates
                                                                         £'000

USA                           41,812      35,065                        38,154
Germany                       19,054      16,457                        19,411
Japan                         17,208      12,910                        17,032
Italy                          9,017       7,768                         9,162
France                         5,030       4,477                         5,112
Other Overseas Countries      21,012      17,429                        20,252
Total overseas turnover      113,133      94,106                       109,123
UK                            12,215      11,488                        12,215
Total Group Turnover         125,348     105,594                       121,338

NOTES:

 1. The financial information set out above does not constitute the Company's
    statutory financial statements for the years ended 30th June 2001 or 30th
    June 2000, but is derived from those financial statements. Statutory
    financial statements for 2000 have been delivered to the Registrar of
    companies, whereas those for 2001 will be delivered following the
    Company's annual general meeting. The auditors have reported on those
    financial statements; their reports were unqualified and did not contain a
    statement under section 237(2) or (3) of the Companies Act 1985.

 2. The proposed final dividend of 10.30p net per share for the year ended 30th
    June 2001 will be paid on 22nd October 2001 to shareholders on the
    register on 21st September 2001.

 3. The Group has adopted FRS 17 - Retirement benefits. The adoption of FRS 17
    has resulted in an increase in reported profit before tax for the current
    year of £600,000 (2000 restated £200,000), shown on the face of the profit
    and loss account as Other finance income.

The Chairman's statement to be included in the 2001 Annual Report and
financial statements:

Trading results

I am pleased to report record results for the year ended 30th June 2001,
despite the current difficult trading environment. Operating profit was £27.9m
(2000 £25.7m), an increase of 9%. Profit before tax rose to £30.8m compared
with £28.3m in the year 2000, and profit after tax amounted to £24.7m (2000 £
21.2m) giving earnings per share of 34.0p - 17% ahead of the previous year's
29.1p.

Turnover grew by 19% during the year to £125.3m (2000 £105.6m), but sales in
the final quarter, although ahead of those for the previous year, were below
expectations, principally due to the slowdown in the US economy.

Turnover in local currency terms increased in all our geographical markets,
with especially strong performances in Japan, South America, the Far East and
Spain, and was further benefited by a positive overall currency effect of £
4.0m compared with the previous year's exchange rates. All product sectors
increased their sales, but there was particular growth in our encoder and
machine tool product sales.

Manufacturing

There has been further investment in our manufacturing facilities with
continued improvements in our operating efficiencies. We are pleased that a
number of our manufacturing and assembly processes have been successfully
moved to our new premises at Woodchester, following its refurbishment, with
further moves planned.

Marketing

As previously indicated, we have stepped up our recruitment of sales and
marketing staff to provide additional sales and technical support for our
offices throughout the world. Our recently formed subsidiary in Australia is
now trading, as is also a new office in the Netherlands.

We are delighted to have entered into a 50% business partnership with RLS
merilna tehnika d.o.o. based in Ljubljana, Slovenia, under which RLS will
market Renishaw products in South Eastern Europe including Slovenia, Croatia,
Hungary, Romania and Bulgaria. Renishaw will in turn assist in the
distribution of RLS products. Further investment is planned in developing the
markets in other Eastern European countries.

Research & Development

We are committed to the development of potential new products and this year we
have invested £18.4m in research and development, including related
engineering costs - an increase of 25% over the previous year's figure of £
14.7m. Our R&D centres have successfully introduced a number of new products,
including a range of manual and motorised toolsetting arms, gold standard high
accuracy laser interferometer, turbine blade refurbishment system and the
NCPCB non-contact toolsetter.

With effect from 1st July 2001, we have reorganised our technical services
division and created a new Group Engineering unit to co-ordinate engineering
expertise and maximise performance across the Group.

Capital Expenditure

The extension of our German offices is due to be completed shortly and a new
building is under construction for our Swiss subsidiary, Renishaw A.G., near
Zurich. Work is currently taking place on upgrading the factory premises and
staff facilities at Woodchester. At New Mills, the new roundabout for revised
access has been completed and plans for the new development have recently been
approved. Total capital expenditure during the year, including that for IT,
amounted to £10.7m (2000 £11.7m) of which £3.3m was spent on property and £
7.4m on other assets.

Personnel and Board

We have a talented, vigorous and enthusiastic workforce to whom the Board is
indebted. During the year, Professor J P McGeehan was appointed to the Board
and is already making a substantial contribution; he will stand for
re-election at the annual general meeting. Leo Brook retired from the Board
after twenty years of valuable service to the Company. We thank him for his
advice and friendship over this period of time, which in part has led to the
success of the Group. We wish him a long and happy retirement.

Awards

We are proud to report that in April, Renishaw was honoured with the Queen's
Award for Enterprise: International Trade 2001. This is the ninth Queen's
Award for the Group. Renishaw has previously been honoured with three awards
for Technological Achievement and five for Export Achievement.

In the MX2001 Awards presented in June this year, the Company was honoured
with the award for 'Product Innovation' and was runner-up for Manufacturing
Excellence. The Awards Scheme is organised by the Institution of Mechanical
Engineers and supported by the DTI, KPMG, Warwick Manufacturing Group,
Sandvik, Professional Engineering Magazine and MTTA. It has gained extensive
recognition as the UK's premier awards scheme for manufacturing.

Prospects and Dividend

We are fortunate in being well represented in all major markets with regular
additions to our range of patented products. Our business is supported by
strong cash flows and shareholders' funds now exceeding £100m for the first
time, including £39.3m net cash.

We do not know how long the current world economic downturn will last but with
the significant increase in our R&D programmes, the Board is very confident of
the Group's long-term prospects and progress.

Your Board proposes a final dividend of 10.30p per share, giving a total for
the year of 15.14p, an increase of 15% over that for 2000.





Sir D R McMurtry, CBE, RDI, CEng, FIMechE

Chairman & Chief Executive
25th July 2001


Enquiries:  B R Taylor  020 7568 4753 (today only)
A C G Roberts  020 7568 4753 (today only)

Registered office:  New Mills, Wotton-under-Edge, Gloucestershire. GL12 8JR
Telephone:  [phone]