Interim Results

Renishaw PLC 24 January 2002 24th January 2002 Renishaw plc and Subsidiary undertakings Interim Announcement of 2002 half year unaudited results for the period ended 31st December 2001 PROFIT AND LOSS ACCOUNT Unaudited Unaudited Audited 6 months to 6 months to year to 31st December 2001 31st December 2000 30th June 2001 (restated) £'000 £'000 £'000 Turnover 51,210 60,206 125,348 Cost of sales 28,818 29,986 60,416 ---------- ---------- ---------- Gross Profit 22,392 30,220 64,932 Distribution costs 10,873 10,756 22,321 Administrative expenses - ongoing 6,230 6,969 14,668 - redundancy 1,301 - - Total administrative expenses 7,531 6,969 14,668 ---------- ---------- ---------- Operating profit 3,988 12,495 27,943 Interest receivable less payable 1,033 1,118 2,252 Other finance income 255 300 600 ---------- ---------- ---------- Profit on ordinary activities before tax 5,276 13,913 30,795 Taxation 1,074 3,488 6,082 ---------- ---------- ---------- Profit for the financial period 4,202 10,425 24,713 Dividends (note 3) 3,698 3,523 11,020 ---------- ---------- ---------- Retained profit for the financial period 504 6,902 13,693 ---------- Earnings per share 5.8p 14.3p 34.0p Dividend per share 5.08p 4.84p 15.14p BALANCE SHEET Unaudited Unaudited Audited 6 months to 6 months to year to 31st December 2001 31st December 2000 30th June 2001 (restated) £'000 £'000 £'000 Fixed assets 47,801 42,208 46,075 Current assets: Stock 23,741 18,208 22,130 Debtors 25,676 29,067 30,634 Cash (net) 30,189 36,302 39,295 ---------- ---------- --------- Total current assets 79,606 83,577 92,059 Creditors due within one year (14,344) (18,461) (25,540) ---------- ---------- --------- Net current assets 65,262 65,116 66,519 ---------- ---------- --------- Total assets less current liabilities 113,063 107,324 112,594 Provisions for liabilities and charges (3,119) (4,385) (2,952) Pension (liability) / asset (155) 700 (320) ---------- ---------- --------- Net assets 109,789 103,639 109,322 ---------- ---------- --------- Capital and Reserves Called up share capital 14,558 14,558 14,558 Share premium account 42 42 42 Profit and loss account 95,189 89,039 94,722 ---------- ---------- --------- Shareholders' funds 109,789 103,639 109,322 ---------- ---------- --------- CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES Unaudited Unaudited Audited 6 months to 6 months to year to 31st December 2001 31st December 2000 30th June 2001 (restated) £'000 £'000 £'000 Profit for the financial period 4,202 10,425 24,713 Currency translation differences on foreign (17) (436) (319) currency net investments Actuarial (loss) / gain recognised in the pension (20) 75 (1,150) schemes less deferred tax thereon Prior year adjustment - 410 410 ---------- ---------- --------- Total gains recognised in the period 4,165 10,474 23,654 ---------- ---------- --------- CASH FLOW STATEMENT Unaudited Unaudited Audited 6 months to 6 months to year to 31st December 2001 31st December 2000 30th June 2001 £'000 £'000 £'000 Net cash inflow from operating activities 5,190 9,862 24,471 Interest received (net) 1,072 1,100 2,180 Tax paid (3,545) (3,391) (6,407) Capital expenditure Purchase of fixed assets (4,901) (4,289) (10,544) Proceeds from sale of fixed assets 127 18 83 --------- ---------- ---------- (4,774) (4,271) (10,461) Equity dividends paid (7,497) (6,515) (10,038) --------- ---------- ---------- Net cash (outflow) before management of liquid (9,554) (3,215) (255) resources and financing Management of liquid resources Decrease / (increase) in bank deposits 3,622 2,512 (709) --------- ---------- ---------- (Decrease) in cash in the period (5,932) (703) (964) --------- ---------- ---------- Reconciliation of net cash flow to movement in net funds: (Decrease) in cash in the period (5,932) (703) (964) Movement in liquid resources (3,622) (2,512) 709 Currency differences 448 (150) (117) --------- ---------- ---------- Movement in net funds in the period (9,106) (3,365) (372) Net funds at 1st July 2001 39,295 39,667 39,667 --------- ---------- ---------- Net funds at 31st December 2001 30,189 36,302 39,295 --------- ---------- ---------- SALES ANALYSIS BY COUNTRY Unaudited Unaudited Audited 6 months to 6 months to year to 31st December 2001 31st December 2000 30th June 2001 £'000 £'000 £'000 USA 14,898 20,590 41,812 Germany 8,213 8,871 19,054 Japan 5,848 8,968 17,208 Italy 3,896 4,070 9,017 France 2,408 2,260 5,030 Other overseas countries 10,704 9,845 21,012 --------- ---------- ---------- Total overseas turnover 45,967 54,604 113,133 UK 5,243 5,602 12,215 --------- ---------- ---------- Total Group Turnover 51,210 60,206 125,348 --------- ---------- ---------- NOTES: 1. The above unaudited financial information does not constitute statutory accounts within the meaning of Section 240 of the Companies Act 1985. The comparative figures for the financial year ended 30th June 2001 are not the Company's statutory accounts for that financial year but are derived from those accounts. Those accounts have been reported on by the Company's auditors and delivered to the Registrar of Companies. The report of the auditors was unqualified and did not contain a statement under Section 237(2) or (3) of the Companies Act 1985. 2. FRS 17 - Retirement benefits was adopted in the financial statements for the year ended 30th June 2001. The comparative figures for the six months to 31st December 2000 have been restated accordingly. 3. The interim dividend of 5.08p will be paid on 8th April 2002 to shareholders on the register on 8th March 2002. 4. The Interim Report will be sent to all shareholders and a copy is available to the public from the registered office. Chairman's Statement: As announced in my statement at the annual general meeting, there has been a marked reduction in turnover for the 6 months to 31st December 2001, which has resulted in profit before tax of £5.3m (2000: £13.9m). This profit is after charging an exceptional amount of £1.3m in respect of the early retirement and voluntary redundancy programme introduced during the period. After taxation of £1.1m, earnings per share amounted to 5.8p (14.3p). Turnover for the period was £51.2m - still the second highest first half turnover in the Company's history, but a 15% reduction compared with the previous year's £60.2m. Turnover was particularly affected by the downturn of over 25% of sales in the USA and Japan, two of our largest markets. On the other hand, turnover in local currency terms rose in several other of our markets, including the other Asean countries, South America, Switzerland and France. All product sectors have shown a reduction in sales, except our Spectroscopy Products Division which grew strongly during the period. A new subsidiary has been established in the Czech Republic and suitable premises have been purchased. Further expansion in the growing Eastern Europe and Russian markets is being pursued. Additional office space has been acquired in Japan. Total capital expenditure during the period was £4.8m (£4.3m) and includes expenditure on our new offices in Switzerland and the extension to our office in Germany. As part of our continuing drive to improve production efficiency, further refurbishment is taking place at our Woodchester site in preparation for the transfer to this site of more of our production facilities. Certain capital expenditure has been deferred, including the planned development at New Mills. Net cash balances at the end of the period were £30.2m. We have continued to invest in research and development, with expenditure, including associated engineering expenses, of £9.3m during the period, up 7% on the £8.7m for the comparative period last year. Each of our seven products divisions will be introducing additional new products into their respective market sectors in 2002. We do not know how long the current downturn will last, but we do not anticipate a significant rise in demand for the remainder of this financial year. We do, however, expect an increase in turnover in the second half compared to the first half. The group continues to invest in research and development and to develop new markets. This, coupled with a recovery by our customers in industries such as semi-conductor, telecoms, engineering and aerospace, gives your Board every confidence in returning to its historic performance levels in the longer term. An interim dividend of 5.08p per share (4.84p) will be paid on 8th April 2002 to shareholders on the register on 8th March 2002. Sir David R McMurtry CBE RDI CEng FIMechE FREng Chairman and Chief Executive 23rd January 2002 Enquiries: B R Taylor 0207 568 4753 (today only) A C G Roberts 0207 568 4753 (today only) Registered office: New Mills, Wotton-under-Edge, Gloucestershire, GL12 8JR Telephone: 01453 524524 Fax: 01453 524901 This information is provided by RNS The company news service from the London Stock Exchange

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