Final Results

Renishaw PLC
24 July 2003

Renishaw plc

23rd July 2003
Renishaw plc and subsidiary undertakings
Preliminary announcement of results for the year ended 30th June 2003

PROFIT AND LOSS ACCOUNT                                                                        2003                 2002
                                                                                              £'000                £'000
Turnover                                                                                    110,640              104,490
Cost of Sales                                                                                59,941               56,273
Gross Profit                                                                                 50,699               48,217
Distribution Costs                                                                           22,880               21,524
Administration Costs                                                                         12,175               13,245
Operating Profit                                                                             15,644               13,448
Interest receivable less payable                                                              1,925                1,974
Other finance income                                                                            230                  640
Profit on ordinary activities before taxation                                                17,799               16,062
Taxation                                                                                      3,454                  880
Profit for the financial year                                                                14,345               15,182
Dividends                                                                                    12,156               11,573
Retained Profit for the financial year                                                        2,189                3,609

Earnings per share (basic and diluted)                                                          19.7p              20.9p
Dividend per share                                                                              16.7p              15.9p

BALANCE SHEET                                                                                  2003                 2002
                                                                                              £'000                £'000
Fixed Assets                                                                                 50,877               49,088
Current Assets:
   Stock                                                                                     20,171               22,076
   Debtors                                                                                   29,600               27,206
   Cash (net)                                                                                37,235               35,656
   Creditors due within one year                                                           (20,534)             (18,176)
Net current assets                                                                           66,472               66,762
Provisions for liabilities and charges                                                      (3,503)              (3,035)
Pension liability                                                                           (8,620)              (5,130)
Net assets, equal to shareholders' funds                                                    105,226              107,685


CASH FLOW STATEMENT                                                                            2003                 2002
                                                                                              £'000                £'000
Net cash inflow from operating activities                                                    20,481               18,291
Interest received (net)                                                                       1,906                2,113
Tax paid                                                                                    (1,380)              (5,195)
Capital Expenditure:
   Purchase of tangible fixed assets                                                        (8,184)              (8,962)
   Sale of tangible fixed assets                                                                158                  427
                                                                                            (8,026)              (8,535)
Dividends paid                                                                             (11,763)             (11,195)
Increase/(decrease) in cash before exchange rate changes                                      1,218              (4,521)
Analysis of changes in cash at bank during the year:
Increase/(decrease) in cash before exchange rate changes                                      1,218              (4,521)
Effect of foreign exchange rate changes                                                         361                  882
                                                                                              1,579              (3,639)
Net cash at bank at 1st July 2002                                                            35,656               39,295
Net cash at bank at 30th June 2003                                                           37,235               35,656

TURNOVER ANALYSIS BY COUNTRY                                            2003                2002            2003 at 2002
                                                                       £'000               £'000          exchange rates
                                                                                                                   £'000
USA and Canada                                                        29,633              31,041                  32,646
Germany                                                               17,484              16,642                  16,392
Japan                                                                 14,120              11,956                  14,798
Far East (excluding Japan)                                            11,778              10,207                  12,873
Italy                                                                  8,786               8,310                   8,476
France                                                                 4,924               4,719                   4,356
Other Overseas Countries                                              14,244              11,894                  14,377
Total overseas turnover                                              100,969              94,769                 103,918
UK                                                                     9,671               9,721                   9,671
Total Group Turnover                                                 110,640             104,490                 113,589



NOTES:

 1. The financial information set out above does not constitute the Company's
    statutory financial statements for the years ended 30th June 2003 or 30th
    June 2002, but is derived from those financial statements. Statutory
    financial statements for 2002 have been delivered to the Registrar of
    companies, whereas those for 2003 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 11.36p per share for the year ended 30th June
    2003 will be paid on 20th October 2003 to shareholders on the register on
    19th September 2003.



The Chairman's statement to be included in the 2003 Annual report and financial
statements:



Trading

I am pleased to report that the improvement in trading conditions anticipated at
the half year has continued throughout the second half.

Turnover for the year totalled £110.6m, compared with £104.5m in 2002. At the
previous year's exchange rates, turnover would have been £2.9m higher at
£113.5m. Strong growth was experienced in the Asean region and Japan and in
Central and Eastern Europe where the Group has been concentrating its recent
marketing focus. All product divisions showed growth over the previous year, in
particular, Laser scale, Encoders and Spectroscopy products.

Operating profit for the year ended 30th June 2003 was £15.6m, an increase of
16% over the previous year. Profit before tax rose by 11% to £17.8m (2002
£16.1m). Profits after tax amounted to £14.3m (2002 £15.3m), after reflecting a
more normalised tax rate following release last year of tax provisions no longer
required. Earnings per share were 19.7p (2002 20.9p).

The Group has maintained its customary high level of liquidity with cash
balances of £37.2m (2002 £35.6m).

Manufacturing

Investment in the Group's manufacturing and assembly processes continues. The
first phase of the transfer of assembly activities and finished goods stores to
our site at Woodchester has been successfully concluded. Phase 2 development
will begin in August this year which will enable the transfer of the Machine
Shop to Woodchester from New Mills.

Marketing

The Group has continued its strategy of overseas market development and
enhancing service to customers, new subsidiaries have been established in
Canada, Israel, Austria and Sweden, the latter two already having commenced
trading. During the year, offices have been purchased in Brazil, Sweden and
South Korea, with a new office block in Japan acquired since the year end. Our
Russian subsidiary has recently moved into new Moscow offices; our Spanish
subsidiary is due to move into new offices in Barcelona.

The Group has attended over 100 exhibitions, tradeshows and seminars throughout
the world, the largest number attended by the Group in any one year. The
Renishaw website has been further developed and extended, with in excess of two
thirds of a million visitors each year.

Appointment of non-executive directors

The Board is pleased to report that two additional non-executive directors were
appointed to the Board on 1st July 2003; David Snowden FCA aged 66 was a partner
at KPMG for 25 years, latterly acting as senior partner to KPMG in South Wales.
He retired from KPMG in 1993 and has subsequently been a non-executive director
and corporate adviser to a number of companies. Terry Garthwaite FCA aged 56
spent 4 years at Price Waterhouse in London before working for Foseco Minsep plc
and then joining engineering group, Senior plc, as Group Finance Director. Since
leaving Senior in 2000, he has been providing consultancy services whilst
working with the Prince's Trust and the Support Group of the Institute of
Chartered Accountants in England and Wales.

They have both been appointed to the Audit Committee where Terry is Chairman and
the Remuneration and Nomination Committee where David is Chairman. John Deer and
BenTaylor have stepped down from the Audit Committee which now comprises only
non-executive directors.

Research and development

Total research and development expenditure and associated engineering costs
during the year amounted to £20.2m of which research and development amounted to
£14.2m. This compares with the total research and development, and associated
engineering costs, of £19.4m in 2002. Arising from our R&D programme a number of
new products have continued to be introduced; during the year for example the
Procera(R) Piccolo tooth scanner has been both successfully developed for and
sold to Nobel Biocare for the dental market. In addition, the forthcoming EMO
Exhibition in Milan will see the official launch of a number of new products for
the machine tool market.

Capital expenditure

Capital expenditure of £8.2m includes investment in new plant and machinery and
further development of the Group's IT management information systems and R&D
design tools, compared with £8.9m in the previous year.

Personnel

In a further demanding year, particularly following the recent downturn, I must
give a special mention to the staff throughout the Group without whom Renishaw's
achievements would not be possible.

Prospects and dividend

We have ended the year with trading conditions continuing to improve. There are
some signs of more buoyant activity in the world economy, we have a number of
new markets to develop and a number of new product introductions. Cost controls
remain strong with recruitment mainly confined to areas of extra investment and
new markets. We remain confident of the Group's longer term continuing progress.

Your board proposes a final dividend of 11.36p per share, giving a total for the
year of 16.70p, an increase of 5% over that for 2002.

Sir David R McMurtry, CBE, RDI, CEng, FIMechE, FREng

Chairman & Chief Executive
23rd July 2003


Enquiries:          B R Taylor          01453 524445
A C G Roberts     01453 524445

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


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