RNS Number:8891N
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: 01453 524524
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