RENISHAW PLC

Renishaw Plc



Renishaw Plc

Company Introduction

Renishaw designs, develops, manufactures and markets a range of products and services relating to measurement, motion control, spectroscopy and precision machining, for a range of applications in machine tool automation, co-ordinate measurement, additive manufacturing, gauging, Raman spectroscopy, machine calibration, position feedback, CAD (computer-aided design)/CAM (computer-aided manufacturing) dentistry, shape memory alloys, large scale surveying, stereotactic neurosurgery, and medical diagnostics. The company primarily operates through two segments: metrology and healthcare. Some of the company's subsidiaries include Renishaw International, Renishaw (Ireland), Renishaw Finance, Wotton Travel, Renishaw Mayfield, PulseTeq, Renishaw Metrology Systems, Renishaw Software, Renishaw KK, Renishaw Iberica, Renishaw Latino Americana, Renishaw Oceania, and Renishaw s.r.o.

Recent Developments

In 2008, Renishaw opened its demonstration and training centre for the Indian market in Pune. In the same year, the compant acquired a 75% shareholding in Schaerer Mayfield Neuromate (since renamed Renishaw Mayfield), based in Switzerland, a manufacturer of surgical robots for neurosurgery. Renishaw invested 25% shareholding in an associate company, PulseTeq Limited, which is specialised in the development of coils for the enhancement of images from MRI scanners and increased the shareholding up to 75% in 2008. In the same year, the company acquired the business and assets from Qualis Service, a German company specialising in the service and calibration of CMMs.

In 2009, Metris and Renishaw entered into an agreement, under which Renishaw licensed the source code of the Metris Camio CMM software. In the same year, Renishaw's Dutch subsidiary opened its new premises in Breda, the Netherlands. Also the same year, the companyopened its Renishaw Centre for Manufacturing Productivity at the University of Greenwich at Medway, Kent in 2009. The company's subsidiary, D3 Technologies, changed its name to Renishaw Diagnostics, in May 2010. In July 2010, Renishaw formed collaboration with Biomet 3i, an implant dentistry and a subsidiary of Biomet, to offer comprehensive digital solutions to dental professionals and patients worldwide. In April 2011, the company acquired the entire share capital of MTT Investments and its subsidiary, MTT Technologies (MTT), which designs, develops and manufactures additive manufacturing and rapid prototyping systems, including selective laser melting, metal casting, and vacuum casting machines and processes. Following the acquisition, MTT operations will be incorporated within Renishaw as a new product division. Renishaw concluded an exclusive licence agreement to a patent on nucleic acid sequence identification (SERRS beacons) from The University of Strathclyde, in May 2011.

Financial Ratio Analysis

Profitability Ratios

2011

2010

2009

2008

2007

ROA % (Net)

23.5

9.69

1.79

16.19

20.15

ROE % (Net)

36.6

14.41

2.5

20.71

25.84

ROI % (Operating)

44.63

17.45

(1.45)

23.08

31.66

Profitability Ratios

The profitability of Renishaw is encouraging as the trends of the company from 2009 to 2011 shows that the company has been increasing its profits. This statement can be endorsed by the evaluation of the profitability ratios. The return on assets of Renishaw from 2009 to 2011 is reflecting that profitability structure of the company inclined from 1.79 to 23.5. In addition to this, return on equity also shows incline over the years. As the return, on equity was 2.5 in 2009, and 36.6 is in 2011. In addition to this, return on investment is also showing the increase in the ...