Renishaw reports record turnover, outlook positive for additive manufacturing

Earning season for the 3D printing industry continues today with the UK’s Renishaw reporting financial data for the year ended 30th June 2017.

Renishaw is a global technology company with core skills in measurement, motion control, healthcare, spectroscopy and manufacturing.

During the reported period Renishaw introduced the RenAM 500M metal additive manufacturing machine, updated their QuantAM software and opened two additional AM centers in Germany and the USA. Also the company increased headcount by 244, employing a total of 4,530 people by year end.

Renishaw reports adjusted profit before tax for the year of £109.1m, an increase of 25% compared to £87.5m in 2016. Total revenue was £536.8m, a 25.7% increase.

Renishaw group segmented revenue highlights.
Renishaw group segmented revenue highlights.

Long-term outlook positive

During a 55 minute call with investors and analysts Sir David R McMurtry, Chairman and Chief Executive, gave further information on the numbers.

“We have experienced strong growth in 2017 and whilst noting ongoing uncertainty surrounding Brexit and currency exchange rate volatility, your directors remain confident in the long-term prospects for the Group and at this early stage in the year anticipate growth in both revenue and profits in the current financial year.”

Renishaw manages its operations in two segments, comprising metrology and healthcare products. In the healthcare segment Renishaw report that, “The medical dental product line has experienced good growth resulting from a continued focus on sales of additive manufacturing technologies into the healthcare market.”

The Group is also applying its measurement expertise to grow additive manufacturing business activities.

The Bloodhound SSC displayed at Renishaw Innovation Center. Photo by Corey Clarke.

Highlights for additive manufacturing at Renishaw included the first sales of the RenAM 500M additive manufacturing system and signing an agreement with China’s FalconTech as a solutions centre partner and distributor, with commitment to purchase 10 RenAM 500M systems over 18 months.

Renishaw made key installations at several sites including Airbus (UK), Centre for Advanced Aerospace Technologies (Spain) and Rapid Advanced Manufacturing (New Zealand).

Jim Martin from Sesame Street and Renishaw with the 3D Printing Industry Award. Photo by Michael Petch
Jim Martin from Sesame Street and Renishaw with the 3D Printing Industry Award at RAPID 2017. Photo by Michael Petch

“Plenty of room” in the additive manufacturing industry

William Lee, Group Sales and Marketing Director, explained during today’s investor call that AM has a very positive outlook. Responding to a question as to whether high growth in AM is coming to an end Lee said, “ the short answer is no, the growth is not ending. This is a very high cap-ex business for us.”

Sir McMurtry explained that in the AM sector there is, “Plenty of room for us, and plenty of room for others.”

“AM will not be for everything. But AM is essential for somethings in the aerospace and medical sectors.”

A planned strategic review of healthcare will include restructuring to give more focus to AM side of Renishaw’s business. This involves getting more efficiency into the dental and maxillofacial business units. Costs of approximately £1 million costs are included for restructuring.

Questions about how much of Renishaw’s double digit growth relates to new products were also answered. The company explained that disruptive technology – for example industrial 3D printing – also takes more time to come through as this is a step-change where customers need to make changes to their business.

The company reiterated the point that there must be a performance benefit for the part to be made using additive manufacturing. Renishaw has been particularly active in leading and educating users about the Design for Additive Manufacturing mindset. This was a key area of a presentation given by Renishaw’s Marc Saunders during the IMTS AM conference.

Renishaw's Product Process Pyramid. Photo by Michael Petch.
Renishaw’s Product Process Pyramid. Photo by Michael Petch.

Today’s results from Renishaw were received positively by the market and the company’s share price rose in early trading.

Renishaw's consolidated income statement for FY2017.
Renishaw’s consolidated income statement for FY2017.

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Featured image shows Renishaw’s RenAM 500M at IMTS. Photo by Michael Petch.