Year Results to 30 June 2000

Renishaw PLC
31 July 2000



Renishaw plc and subsidiary companies

Preliminary announcement of results for the year ended 30th June 2000

PROFIT AND LOSS ACCOUNT
                                               2000            1999
                                              £'000           £'000

Turnover                                    105,594          96,319

Cost of sales                                50,875          46,271
                                             ______          ______

Gross profit                                 54,719          50,048
                                             ______          ______

Distribution costs                           16,818          15,517
Administration costs                         12,224          11,192
                                             ______          ______

Operating profit                             25,677          23,339
Profit on sale of property                       --             586
                                             ______          ______
Profit before interest                       25,677          23,925
Interest                                      2,384           1,904
                                             ______          ______
Profit before tax                            28,061          25,829
Tax                                           7,015           6,716
                                             ______          ______
Profit for the financial year                21,046          19,113
Dividends                                     9,572           8,184
                                             ______          ______
Retained profit for the financial year       11,474          10,929
                                             ______          ______


Earnings per share (basic & diluted)          28.9p           26.3p
                                             ______          ______

Adjusted basic earnings per share             28.9p           25.5p
                                             ______          ______


Dividend per share                           13.16p          11.44p
                                             ______          ______


BALANCE SHEET
                                               2000            1999
                                              £'000           £'000

Fixed assets                                 40,453          32,784

Current assets:
Stock                                        15,309          14,215
Debtors                                      27,629          23,969
Cash                                         39,667          37,591
                                             ______          ______
Total current assets                         82,605          75,775
Creditors due within one year               (21,425)        (18,651)
                                             ______          ______
Net current assets                           61,180          57,124

Provisions for liabilities and charges       (4,945)         (4,865)
                                             ______          ______
Net assets, equal to shareholders' funds     96,688          85,043
                                             ______          ______


CASH FLOW STATEMENT

                                               2000            1999
                                              £'000           £'000

Net cash inflow from operating activities    26,036          24,433

Interest received (net)                       2,659           1,754

Tax paid                                     (5,634)         (4,795)

Dividends paid                               (8,727)         (7,490)

Purchase of fixed assets (net)              (11,592)        (11,015)

Proceeds from sale of property                   --             990

Share options exercised                          --               3
                                             ______          ______
Increase in cash                              2,742           3,880
                                             ______          ______


Increase in cash                              2,742           3,880
 
Exchange rate effects                          (666)           (877)
                                             ______          ______
Movement in net cash during the year          2,076           3,003

Net cash at the beginning of the year        37,591          34,588
                                             ______          ______
Net cash at the end of the year              39,667          37,591
                                             ______          ______


TURNOVER ANALYSIS BY COUNTRY
                                                               2000 at 1999
                                               2000      1999   exch rates
                                              £'000     £'000     £'000

USA                                          35,065    33,417    34,064
Germany                                      16,457    15,780    17,847
Japan                                        12,910    10,635    10,983
Italy                                         7,768     7,520     8,479
France                                        4,477     4,443     4,875
Other overseas countries                     17,429    14,163    17,877
                                             ______    ______    ______
Total turnover to overseas countries         94,106    85,958    94,125
United Kingdom                               11,488    10,361    11,488
                                             ______    ______    ______
Total group turnover                        105,594    96,319   105,613
                                             ______    ______    ______

NOTES:

1. The financial information set out above does not constitute the Company's
statutory financial statements for the years ended 30th June 2000 or 30th June
1999, but is derived from those financial statements. Statutory financial
statements for 1999 have been delivered to the Registrar of companies, whereas
those for 2000 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 8.95p net per share for the year ended 30th
June 2000 will be paid on 23rd October 2000 to shareholders on the register on
22nd September 2000.

3. The adjusted basic earnings per share figure for the previous year is
calculated after excluding the profit on sale of property.      


Chairman's statement to be included in 2000 Annual Report:

Trading results

I am delighted to report another year of progress: further investment in both
infrastructure and research and development, the launch of additional products
and record profits.

Operating profit rose to £25.7m from £23.3m. Profit before tax, including net
interest receivable of £2.4m, amounted to £28.1m (1999 £25.8m) and profit
after tax was £21.0m (1999 £19.1m). Earnings per share of 28.9p increased by
13%, compared with adjusted earnings per share of 25.5p in 1999.

Turnover for the year grew to over £100 million for the first time, reaching a
total of £105.6m (1999 £96.3m). In local currency terms, turnover increased in
all the Group's geographic markets, particularly in the Far East, western
Europe and the UK. After taking into account the effects of currency changes
and the lower value of the euro against sterling during the year, our main
growth was in the Far East, USA, South America, Spain and, again, the UK.

In product sectors there was significant growth in encoder, calibration and
CMM products, but we were also pleased that there was a good recovery in
machine tool products in the second half of the year.


Marketing

There was continued growth and development of the Group's marketing presence
overseas and a new representative office has been established in Taiwan. Also,
a new subsidiary has been set up in India, based in Bangalore. We are seeking
suitable staff and new premises in the Netherlands to support our activities
in the Benelux countries. We have added to our sales and marketing personnel
during the last year, with plans for yet further recruitment in the current
year. Our website is being totally redesigned, with a greater emphasis on
Renishaw's products and their applications.


Manufacturing

Investment in our manufacturing capacity and processes continues to bring
greater efficiencies in cost reduction, stock management and speed of
manufacture. Total manufacturing investment during the year, excluding
property, amounted to £2m.


Research and development

As indicated in my statement last year, expenditure on research and
development for product design and development has accelerated. Total
expenditure on research and development, including related engineering costs,
amounted to £14.7m (1999 £12.2m), an increase of 20%. A new research and
development office has been established at the Innovation Centre at Exeter
University and will be occupied shortly by a small specialist team. New
products have been launched during the year, including a number of encoder
products, the NC1 machine tool non-contact tool setter, the UCC1 CMM
controller and enhanced software for the QC10 ballbar. We are planning more
new product launches in the current year.


Capital expenditure

The head office of Renishaw Inc in Chicago has been completed and is now
occupied. The board has approved plans for the extension of our offices in
Germany. Following outline planning permission, initial work has begun on the
road access at New Mills. At the end of the year, the company acquired
approximately 16,500 square metres of office and factory premises at
Woodchester, near Stroud, Gloucestershire, to provide additional facilities
for the Group's continued expansion. Total capital expenditure during the
year, including further IT expenditure, amounted to £11.7m, of which £5.8m was
spent on property and £5.9m on other assets.


Personnel

At the year end, our total staff, both in the UK and overseas, was 1,353 (1999
1,202). Our future prospects depend on them. We are proud of, and grateful to,
them all with whom we face the future with great confidence.


Prospects and dividend

The reorganisation of the Group into specialist product divisions has
continued to produce clearer lines of focus and business opportunities. As we
grow stronger and more widely and deeply based, we confidently look forward to
continued progress. Your board is pleased to propose a final dividend of 8.95p
per share, giving a total for the year of 13.16p, an increase of 15% over that
for 1999.


D R McMurtry
Chairman & Chief Executive
28th July 2000

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