2001 Interim Results

Renishaw PLC
24 January 2001


Renishaw plc and subsidiary companies
2001 Interim Results

Unaudited results for the first half year ended 31st December 2000



PROFIT AND LOSS ACCOUNT
                                    Unaudited       Unaudited       Audited
                                  6 months to     6 months to    Year ended
                                31st December   31st December     30th June
                                         2000            1999          2000 
                                        £'000           £'000         £'000 

Turnover                               60,206          47,320       105,594
                                       ______          ______        ______

Operating profit                       12,495          10,105        25,677
Interest receivable (net)               1,118           1,003         2,384
                                       ______          ______        ______
Profit before tax                      13,613          11,108        28,061
Tax                                     3,403           3,000         7,015
                                       ______          ______        ______
Profit for the financial period        10,210           8,108        21,046
Dividends                               3,523           3,057         9,572
                                       ______          ______        ______
Retained profit for the period          6,687           5,051        11,474
                                       ______          ______        ______


Earnings per share                      14.0p           11.1p         28.9p
                                       ______          ______        ______


Dividend per share                      4.84p           4.21p        13.16p
                                       ______          ______        ______



BALANCE SHEET
                                    Unaudited       Unaudited       Audited
                                  6 months to     6 months to    Year ended
                                31st December   31st December     30th June
                                         2000            1999          2000
                                        £'000           £'000         £'000

Fixed assets                           42,208          33,694        40,453

Current assets:
Stock                                  18,208          14,951        15,309
Debtors                                29,067          22,178        27,629
Cash                                   36,302          38,118        39,667
                                       ______          ______        ______
Total current assets                   83,577          75,247        82,605
Creditors due within one year         (18,461)        (14,119)      (21,425)
                                       ______          ______        ______
Net current assets                     65,116          61,128        61,180
                                       ______          ______        ______
Total assets less current liabilities 107,324          94,822       101,633

Provisions for liabilities & charges   (4,385)         (5,085)       (4,945)
                                       ______          ______        ______
Net assets                            102,939          89,737        96,688
                                       ______          ______        ______

Capital and reserves
Called up share capital                14,558          14,558        14,558
Share premium account                      42              42            42
Profit and loss account                88,339          75,137        82,088
                                       ______          ______        ______
Shareholders' funds                   102,939          89,737        96,688
                                       ______          ______        ______


CASH FLOW STATEMENT
                                    Unaudited       Unaudited       Audited
                                  6 months to     6 months to    Year ended
                                31st December   31st December     30th June
                                         2000            1999          2000
                                        £'000           £'000         £'000

Cash inflow from operating activities   9,862          10,635        26,036

Interest received (net)                 1,100           1,266         2,659

Tax paid                               (3,391)         (2,349)       (5,634)

Capital expenditure
Purchase of fixed assets               (4,289)         (3,292)      (11,718)
Proceeds from sale of fixed assets         18              26           126
                                       ______          ______        ______
                                       (4,271)         (3,266)      (11,592)

Dividends paid                         (6,515)         (5,663)       (8,727)
                                       ______          ______        ______
Net cash (outflow) before management
of liquid resources and financing      (3,215)            623         2,742

Management of liquid resources
Decrease in bank deposits               2,512          (1,373)       (1,733)
                                       ______          ______        ______
(Decrease) in cash in the period         (703)           (750)        1,009
                                       ______          ______        ______


Reconciliation of net cash flow to movement in net funds:

(Decrease) in cash in the period         (703)           (750)        1,009

Movement of liquid resources           (2,512)          1,373         1,733
Currency differences                     (150)            (96)         (666)
                                       ______          ______        ______
Movement in net funds in the period    (3,365)            527         2,076

Net funds at 1st July 2000             39,667          37,591        37,591
                                       ______          ______        ______
Net funds at 31st December 2000        36,302          38,118        39,667
                                       ______          ______        ______



STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

                                    Unaudited       Unaudited       Audited
                                  6 months to     6 months to    Year ended
                                31st December   31st December     30th June
                                         2000            1999          2000
                                        £'000           £'000         £'000

Profit for the financial period        10,210           8,108        21,046

Currency translation differences
on foreign currency net investments      (436)           (357)          171
                                       ______          ______        ______
Total gains recognised in the period    9,774           7,751        21,217
                                       ______          ______        ______




SALES ANALYSIS BY COUNTRY
                                    Unaudited       Unaudited       Audited
                                  6 months to     6 months to    Year ended
                                31st December   31st December     30th June
                                         2000            1999          2000
                                        £'000           £'000         £'000

USA                                    20,590          15,009        35,065
Japan                                   8,968           5,720        12,910
Germany                                 8,871           7,803        16,457
Italy                                   4,070           3,808         7,768
France                                  2,260           2,133         4,477
Other overseas countries                9,845           7,926        17,429
                                       ______          ______        ______
Total sales to overseas countries      54,604          42,399        94,106
United Kingdom                          5,602           4,921        11,488
                                       ______          ______        ______
Total group turnover                   60,206          47,320       105,594
                                       ______          ______        ______


NOTES:

1. The financial information set out above does not constitute statutory
accounts within the meaning of section 240 of the Companies Act 1985. The
comparative figures for the financial year ended 30th June 2000 are not the
Company's statutory accounts for that financial year but are derived from
those accounts. Those accounts have been reported on by the Company's auditors
and delivered to the Registrar of Companies. The report of the auditors was
unqualified and did not contain a statement under section 237(2) or (3) of the
Companies Act 1985.

2. The interim dividend of 4.84p per share will be paid on 9th April 2001 to
shareholders on the register on 9th March 2001.

3. The Interim Report will be sent to all shareholders and a copy is available
to the public from the registered office.


CHAIRMAN'S STATEMENT

I am pleased to report on a very successful first 6 months of the current
year.  

Turnover rose by 27% to £60.2m, compared with £47.3m in the corresponding
period last year. There was growth in all geographical markets, in particular
the Far East, Japan, Spain and USA.  In terms of product sectors, growth was
especially strong in our Encoder, CMM and Machine Tool markets.  

During the period there was a net currency benefit to turnover of £2.1m, as
compared with exchange rates a year earlier.  

We have further stepped up recruitment throughout the Group, particularly in
research and development and marketing, in anticipation of continuing
development and expansion and to have the necessary staff and resources for
the growing number of new patented products being introduced. Despite these
increased costs, operating profit grew by 24% from £10.1m to £12.5m. With
interest receivable of £1.1m (£1.0m in the comparable period last year),
profit before tax amounted to £13.6m, an increase of 23% over the comparable
period last year. Profit after tax was £10.2m (£8.1m in the comparable period
last year) and earnings per share were 14.0p, an increase of 26% over the
previous period of 11.1p.

Capital expenditure in the half year amounted to £4.3m (£3.3m), including
continued group-wide IT systems development and a new Renishaw website to be
launched shortly. The recently acquired Woodchester premises have already been
partly refurbished and occupied, with further utilisation planned over the
next 12 months. Development at New Mills is proceeding and the new
perimeter/access road is due for completion at the end of March. Detailed
plans for the development of much-needed additional space at New Mills are
currently being considered by the Planning Authority.

We continue to develop overseas and a new subsidiary company, Renishaw Oceania
Pty Ltd, has been formed in Australia. The extension of our offices in Germany
has begun, with completion due at the end of the year, and our offices in Hong
Kong have almost doubled in size.

We are pleased to announce that Professor J P McGeehan has joined the Board as
a non-executive director as from today. He is Dean of Engineering at the
University of Bristol and also Managing Director of Toshiba Research Europe
Limited: Telecommunications Research Laboratory.

Your Board is optimistic about both the current year and the Group's long-term
prospects.

An interim dividend of 4.84p per share, an increase of 15% over the 2000
interim dividend, will be paid on 9th April 2001 to shareholders on the
register on 9th March 2001.


Sir David R McMurtry  CBE RDI CEng FIMechE
Chairman & Chief Executive
24th January 2001


Enquiries:    B R Taylor          020 7568 4753 (today only)
              A C G Roberts       020 7568 4753 (today only)  

Registered office:    New Mills, Wotton-under-Edge, Gloucestershire. GL12 8JR
Telephone:            01453 524524
Fax:                  01453 524901