Final Results

RENISHAW PLC
30 September 1999


Renishaw plc and subsidiary companies
Preliminary announcement of results for the year ended 30th June 1999

PROFIT AND LOSS ACCOUNT
                                               1999            1998
                                              £'000           £'000

Turnover                                     96,319          92,349

Cost of sales                                46,271          46,403
                                             ______          ______

Gross profit                                 50,048          45,946
                                             ______          ______

Distribution costs                           15,517          14,398
Administration costs                         11,192          10,689
                                             ______          ______

Operating profit                             23,339          20,859
Profit on sale of property                      586              --
                                             ______          ______
Profit before interest                       23,925          20,859
Interest                                      1,904           1,521
                                             ______          ______
Profit before tax                            25,829          22,380
Tax                                           6,716           6,280
                                             ______          ______
Profit for the financial year                19,113          16,100
Dividends                                     8,184           7,242
                                             ______          ______
Retained profit for the financial year       10,929           8,858
                                             ______          ______


Earnings per share                            26.3p           22.1p
                                             ______          ______

Adjusted earnings per share                   25.5p           22.1p
                                             ______          ______


Dividend per share                           11.44p           9.95p
                                             ______          ______


BALANCE SHEET
                                               1999            1998
                                              £'000           £'000

Fixed assets                                 32,784          27,035

Current assets:
Stock                                        14,215          14,285
Debtors                                      23,969          20,867
Cash                                         37,591          34,588
                                             ______          ______
Total current assets                         75,775          69,740
Creditors due within one year               (18,651)        (18,516)
                                             ______          ______
Net current assets                           57,124          51,224

Provisions for liabilities and charges       (4,865)         (3,950)
                                             ______          ______
Net assets, equal to shareholders' funds     85,043          74,309
                                             ______          ______


CASH FLOW STATEMENT

                                               1999            1998
                                              £'000           £'000

Net cash inflow from operating activities    24,433          21,952

Interest received (net)                       1,754           1,423

Tax paid                                     (4,795)         (5,916)

Dividends paid                               (7,490)         (6,456)

Purchase of fixed assets (net)              (11,015)         (7,586)

Proceeds from sale of property                  990              --

Share options exercised                           3              45
                                             ______          ______
Increase in cash                              3,880           3,462
                                             ______          ______


Increase in cash                              3,880           3,462
 
Exchange rate effects                          (877)         (1,154)
                                             ______          ______
Movement in net cash during the year          3,003           2,308

Net cash at the beginning of the year        34,588          32,280
                                             ______          ______
Net cash at the end of the year              37,591          34,588
                                             ______          ______


TURNOVER ANALYSIS BY COUNTRY

                                               1999       1998  1999 at 1998
                                                                exchange rates

                                              £'000      £'000      £'000

USA                                          33,417     34,931     33,071
Germany                                      15,780     12,843     15,316
Japan                                        10,635     10,469     10,163
Italy                                         7,520      7,200      7,337 
France                                        4,443      4,192      4,307
Other overseas countries                     14,163     13,049     14,274
                                             ______     ______     ______
Total turnover to overseas countries         85,958     82,684     84,468
United Kingdom                               10,361      9,665     10,361
                                             ______     ______     ______
Total group turnover                         96,319     92,349     94,829
                                             ______     ______     ______


NOTES:

1. The financial information set out above does not constitute the Company's
statutory financial statements for the years ended 30th June 1999 or 30th June
1998, but is derived from those financial statements. Statutory financial
statements for 1998 have been delivered to the Registrar of companies, whereas
those for 1999 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 7.78p net per share for the year ended 30th
June 1999 will be paid on 22nd November 1999 to shareholders on the register
on 29th October 1999.

3. The adjusted earnings per share are calculated after excluding the profit
on sale of property.      


Chairman's statement to be included in 1999 Annual Report:

Trading results
In line with the Group's advance announcement on 6th July 1999, I am pleased
to report that the audited profit before tax for the year to 30th June 1999
amounted to £25.8m, an increase of 15% over the £22.4m profit for 1998. This
includes a profit of £0.6m on the sale of property.

Profit after tax amounted to £19.1m (1998 £16.1m) giving adjusted earnings per
share, after taking out the property profit, of 25.5p, 15% ahead of the 22.1p
earnings per share in 1998.  

Turnover, which benefited from a favourable exchange rate movement compared
with the previous year of £1.5m, was £96.3m compared with £92.3m in the
previous year. Turnover was strong in Germany, Switzerland, Brazil, the United
Kingdom and Spain, but below original expectations in the USA, where there was
reduced demand in the machine tool sector. Spectroscopy and encoder products
saw considerable growth.  

Operating profit amounted to £23.3m (1998 £20.9m) and net interest receivable
rose to £1.9m, from £1.5m in 1998.  

Dividends
A final dividend of 7.78p per ordinary share is proposed, giving a total
dividend for the year of 11.44p, an increase of 15% in the annual dividend
over that for 1998.  

Marketing
The Group continued to develop its markets and increase the personnel directly
involved in marketing and sales. Again, the Group participated in over 60
international exhibitions across the world. Investment in additional sales and
marketing personnel will continue in this financial year.

New representative offices have been opened in Australia and South Korea.
Plans have been agreed to open a representative office in Taiwan. Renishaw KK
moved to new Tokyo offices in May and has enlarged its presence in Nagoya,
whilst in China, our representative office in Beijing moved to new premises.  

In April 1999, the HS10 laser scale system became the Group's ninth product to
be selected under the millennium products initiative, eight having been chosen
in the first selection in April 1998.
 
Renishaw's own website has attracted great interest and its usage has grown
dramatically over the last two years. The current usage is in excess of 12,000
visits per month.

Manufacturing
The Group continues to invest heavily in the design and development of more
cost effective manufacturing processes and techniques for its expanding
product range. The Group is currently investing in additional machines for its
own Automatic Milling Turning and Inspection Centre line. 

Research and development
The Group has continued its commitment to a high level of research and
development during the year, primarily related to the design and development
of new products. Expenditure on research and development, together with
related engineering costs, amounted to £12.2m (1998 £10.7m). The expenditure
on research and development will accelerate during the year in order to take
advantage of opportunities that we foresee worldwide.

Capital expenditure
The Group's research operation in Riccarton, Edinburgh was officially opened
in July 1999 by the Rt Hon. Lord Mackay of Clashfern KT and the new head
office of Renishaw Inc in Chicago is due to be completed by the end of
December. The planning authorities in the UK have granted conditional outline
planning permission for further expansion at New Mills and final project
designs are currently being considered by the Board.  

Approximately £2m has been expended on the Group's computing systems worldwide
to enhance further the Group's reporting systems and to ensure that the Group
is Year 2000 compliant.  

Total capital expenditure amounted to £9.6m (1998 £9.2m), of which £5.3m was
spent on property and £4.3m on other assets.  

Results announcement date
Your Board has decided that preliminary results for the full year, together
with the recommended final dividend, will be announced in future within one
month of the year end, beginning in July 2000 for the results of the current
year ending on 30th June 2000.

Personnel
The Group's success over the last 25 years has been based upon its people and
their ability to design, manufacture and market innovative and patented
products. Over this period, the Group has grown significantly in size and
complexity and now has over 1,200 employees in the UK and overseas. The Board
is conscious of and grateful for their significant contribution.  

Outlook
The reorganisation of the Group into six specialist product divisions,
intended to give greater focus for each product group in research and
development, manufacturing and marketing, is beginning to produce the results
anticipated in promoting efficiencies and growth. Moreover, we are fortunate
in having extremely strong resources to support good ideas and their
development; at the year end, net cash balances amounted to £37.6m.

Although the current year has started somewhat slowly in terms of turnover
growth, your Board continues to view the long term future with great
confidence.


D R McMurtry
Chairman & Chief Executive
30th September 1999

Enquiries:    B R Taylor          0171 568 4753 (today only)
              A C G Roberts       0171 568 4753 (today only)

Registered office:    New Mills, Wotton-under-Edge, Gloucestershire. GL12 8JR
Telephone:            01453 524524