Thursday 30th July 2009
The chairman of Gloucestershire’s largest private company has announced a £38 million fall in profits, in what he describes as the most difficult year in the firm’s history.
In the last year profit generated by Renishaw plc has fallen from £43 million last year to £4.7 million.
The figure was revealed in the company’s preliminary end-of year statement, released yesterday.
In it Sir David McMurtry, chairman and chief executive of Renishaw, which has its head quarters in Wotton-under-Edge, said that revenue was down 37 per cent compared to the previous year due to a slump in the global markets.
Mr McMurtry said: "This last year has been the most difficult in the history of the company, characterised by two different half year performances.
"The first half commenced with record first quarter results and a promising outlook for the year, followed by an unprecedented downturn in the ensuing period.
"We were forced to make hard decisions in order to position the business for this market environment, pending a return of better conditions."
Renishaw made 437 staff redundant earlier this year, which was 20 per cent of its workforce, and staff in all their sites around the world agreed to a 20 per cent pay cut, which remains in force until December. Mr McMurtry said: "I would like to thank all our employees for their steadfast support during what has been the most challenging and demanding period in our history.
"They have responded magnificently to all challenges and difficulties both in the UK and overseas."
However Mr McMurtry remains confident of the company’s future and is continuing to invest in profitable markets, such as metrology and dental products.
He added: "The group, with its strong balance sheet, portfolio of existing products and new products in development remains strongly positioned to meet all present demands and to respond to any increase in activity as it develops. We continue to face our long-term future with great confidence."
