RNS Number:4952U
Renishaw PLC
22 January 2004
22nd January 2004
Renishaw plc and subsidiary undertakings
Interim announcement of 2004 half year unaudited results for the period ended
31st December 2003
PROFIT AND LOSS ACCOUNT
Unaudited Unaudited Audited
6 months to 6 months to Year to
31st December 31st December 30th June
2003 2002 2003
#'000 #'000 #'000
Turnover 58,576 51,518 110,640
Cost of sales 31,959 28,592 59,941
________ _______ _______
Gross profit 26,617 22,926 50,699
Distribution costs 12,611 11,044 22,880
Administrative expenses 8,393 6,495 12,175
_______ _______ _______
Operating profit 5,613 5,387 15,644
Interest receivable less payable 953 986 1,925
Other finance income 80 120 230
________ ________ ________
Profit on ordinary activities before tax 6,646 6,493 17,799
Taxation 1,130 1,103 3,454
________ ________ ________
Profit for the financial period 5,516 5,390 14,345
Dividends (note 2) 4,083 3,887 12,156
________ ________ ________
Retained profit for the financial period 1,433 1,503 2,189
________ ________ ________
Earnings per share 7.58p 7.41p 19.71p
________ ________ ________
Dividend per share 5.61p 5.34p 16.70p
________ ________ ________
BALANCE SHEET
Unaudited Unaudited Audited
6 months to 6 months to Year to
31st December 31st December 30th June
2003 2002 2003
#'000 #'000 #'000
Fixed assets 57,343 48,935 50,877
Current assets
Stock 20,754 21,214 20,171
Debtors 27,770 25,989 29,600
Cash at bank 29,150 33,202 37,235
________ ________ ________
Total current assets 77,674 80,405 87,006
Creditors falling due within one year (16,636) (12,563) (20,534)
________ ________ ________
Net current assets 61,038 67,842 66,472
________ ________ ________
Total assets less current liabilities 118,381 116,777 117,349
Provisions for liabilities and charges (3,563) (2,861) (3,503)
Pension liability (8,120) (4,660) (8,620)
________ ________ ________
Net assets 106,698 109,256 105,226
________ ________ ________
Capital and reserves
Called up share capital 14,558 14,558 14,558
Share premium account 42 42 42
Profit and loss account 92,098 94,656 90,626
________ ________ ________
Shareholders' funds - equity 106,698 109,256 105,226
________ ________ ________
CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
Unaudited Unaudited Audited
6 months 6 months Year
to 31st to 31st to 30th
December December June
2003 2002 2003
#'000 #'000 #'000
Profit for the financial period 5,516 5,390 14,345
Currency translation differences on foreign currency
net investments 39 328 52
Actuarial loss recognised in the pension schemes
less deferred tax thereon - (260) (4,700)
________ ________ ________
Total gains recognised in the period 5,555 5,458 9,697
________ ________ ________
CONSOLIDATED CASH FLOW STATEMENT
Unaudited Unaudited Audited
6 months 6 months Year
to 31st to 31st to 30th
December December June
2003 2002 2003
#'000 #'000 #'000
Net cash inflow from operating activities 9,519 7,567 20,481
Interest received (net) 969 922 1,906
Tax paid (1,547) (1,073) (1,380)
Capital expenditure
Purchase of tangible fixed assets (9,441) (3,274) (8,184)
Sale of tangible fixed assets 48 48 158
________ ________ _______
(9,393) (3,226) (8,026)
Equity dividends paid (8,269) (7,876) (11,763)
________ ________ ________
Cash (outflow)/inflow before management
of liquid resources (8,721) (3,686) 1,218
Management of liquid resources
Decrease in bank deposits 3,365 2,064 7,628
________ ________ _______
(Decrease)/increase in cash in the period (5,356) (1,622) 8,846
________ ________ ________
Reconciliation of net cash flow to movement in net funds:
(Decrease)/increase in cash in the period (5,356) (1,622) 8,846
Movement in liquid resources (3,365) (2,064) (7,628)
Currency differences 636 1,232 361
________ ________ ________
Movement in net funds in the period (8,085) (2,454) 1,579
Net funds at 1st July 37,235 35,656 35,656
________ ________ ________
Net funds at 31st December 29,150 33,202 37,235
________ ________ ________
TURNOVER ANALYSIS BY GEOGRAPHICAL MARKET Unaudited Unaudited Audited
6 months 6 months Year
to 31st to 31st to 30th
December December June
2003 2002 2003
#'000 #'000 #'000
USA and Canada 14,133 14,026 29,633
Germany 9,235 8,272 17,484
Japan 7,588 6,599 14,120
Far East (excluding Japan) 6,813 5,303 11,778
Italy 4,226 3,972 8,786
France 2,656 2,300 4,924
Other overseas countries 9,459 6,170 14,244
________ ________ ________
Total overseas turnover 54,110 46,642 100,969
UK 4,466 4,876 9,671
________ ________ ________
Total group turnover 58,576 51,518 110,640
________ ________ ________
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
2003 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. The interim dividend of 5.61p will be paid on 6th April 2004 to
shareholders on the register on 5th March 2004.
3. The Interim report will be sent to all shareholders and a copy is
available to the public from the registered office.
Chairman's statement:
I am pleased to report the results for the first six months which show an
encouraging start to the full year.
Turnover rose to #58.6m, an increase of 13.7% over the #51.5m in 2002. There was
significant growth in a number of our overseas markets, notably the Far East,
Japan and South America as well as in our more recently established subsidiaries
in Eastern Europe and Russia. Sales grew in nearly all product sectors and, in
particular, in scanning, encoders and calibration.
Continuing investment in research and development with associated engineering
costs, amounted to #11.0m (2002: #9.9m). This period saw the introduction of
further new products, in particular the NC4 non-contact tool setting probe, the
RMP 60 radio probe, a range of rotary magnetic encoder products and additional
software products.
Operating profit for the first six months ended 31st December 2003 amounted to
#5.6m compared with #5.4m in the previous first half, which included a currency
profit of #1.2m. Profit before tax was #6.6m (2002: #6.5m) providing earnings
per share of 7.6p (2002: 7.4p).
Capital expenditure rose during the period to #10.1m (2002: #3.2m). The increase
was principally accounted for by the purchase in July of our new freehold office
building in Tokyo costing #5.1m, which was occupied in November, replacing two
rented offices.
Investment continues in the development of our marketing infrastructure, with
recruitment in the Far East, particularly China, and the strengthening of our
subsidiaries in Eastern Europe and Russia. The new subsidiary in Canada
commenced trading this month. In the UK, Phase II development is well on course
to enable the transfer of the machine shop to Woodchester from New Mills later
this year.
Due to the increased capital expenditure, cash balances at 31st December 2003
reduced to #29.2m (2002: #33.2m).
We have seen an encouraging increase in the level of activity in recent months,
particularly from new products and emerging markets, with increased order levels
and turnover. However, original equipment manufacturers traditionally provide
little visibility of their future requirements and, with the business profile
biased towards the second half, the outcome for the full year is always
difficult to assess.
The continuing expansion of our subsidiary network throughout the world ensures
our marketing, sales and service activities are able to maximise the increasing
opportunities. Together with our substantial research and development programme,
we remain confident of future progress.
An interim dividend of 5.61p per share (2002: 5.34p per share) will be paid on
6th April 2004 to shareholders on the register on 5th March 2004.
Sir David R McMurtry CBE RDI CEng FIMechE FREng
Chairman and Chief Executive
21st January 2004
Enquiries: B R Taylor 01453 524445
A C G Roberts 01453 524445
Registered office: New Mills, Wotton-under-Edge, Gloucestershire, GL12 8JR
Company Number: 1106260
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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