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Hardware & electrical equipment

Renishaw expects challenging markets after 97% full-year profit crash

To cope with the crisis, the high-precision tool maker axed jobs across its global operations and cancelled dividends

Renishaw plc (LON:RSW) has posted a 97% crash in full-year profit due to restructuring costs and higher expenses amid the coronavirus pandemic.

The high-precision tool maker added that market conditions are going to remain “very challenging”, particularly in the automotive and aerospace sectors.

READ: Renishaw drops final dividend as trading remains subdued

The company said it is planning to keep investing in the development of new products and applications, along with targeted investment in production, and sales and marketing facilities around the world.

In the year to June 30, 2020, the FTSE 250-listed firm's revenue fell by 11% to £510mln, while profit before tax crashed by 97% to £3mln.

To cope with the crisis, the firm has axed jobs across its global operations and cancelled dividends. It's net cash and bank deposits were £120mln at the end of June.

Shares fell 6% to 4,966p on Thursday at the opening bell.

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