Renishaw, the London-listed technology company, has announced a slight decline in its pretax profit for fiscal year 2023, which ended on June 30. The company cited lower demand from semiconductor equipment suppliers and higher costs as contributing factors.
In the fiscal year, Renishaw's pretax profit reached £145.1 million ($179.7 million), representing a marginal decrease from £145.6 million in FY2022. Adjusted pretax profit, which excludes exceptional and one-off items, experienced a more significant decline from £163.7 million to £141.0 million. This decline can be attributed to several factors, including increased employee wages, lower production volumes, and a 12% rise in engineering, distribution, and administration costs.
Despite these challenges, Renishaw witnessed a growth in revenue, which rose from £671.1 million to £688.6 million compared to the previous year. This growth was driven by strong system sales, offsetting weaker demand from the semiconductor sector.
Looking ahead, Chief Executive William Lee expressed confidence in the company's performance for fiscal year 2024, noting that they have started the year steadily with a solid order book. While acknowledging the uncertain macroeconomic environment in the short term, Renishaw remains committed to prudent cost management, implementing price increases, and enhancing productivity.
Additionally, Renishaw has declared a final dividend of 59.4 pence.