Renishaw PLC
19 October 2001
Chairman's Statement to be made at the annual general meeting to be held at 12
noon on 19 October 2001
'The difficult trading environment I reported in my last Chairman's Statement
has deteriorated even further. As a consequence the current year has not
started well with the first quarter sales being approximately 10% less than
the corresponding period last year. The USA, our largest market, is the worst
affected.
A number of our customers in the telecoms, aerospace and engineering
industries have been badly affected by the speed of the downturn. If these
present difficult trading conditions and world economic uncertainties continue
throughout the financial year then our full-year profits will be below those
of last year's record results by a very significant amount.
Despite your Board's confidence in the Group's longer-term prospects and
progress, it has been necessary to conduct a review of the Group in the light
of present conditions and to take appropriate action as follows:
A voluntary redundancy and early retirement programme has been introduced.
All cost centres have been scrutinised and expenditure reduced where
appropriate. Certain capital expenditure has been deferred, including the
planned development at New Mills.
The trading environment will, of course, be kept under ongoing review and any
further necessary action taken as required.
Renishaw has considerable resource and many strengths. Our research and
development programmes are continuing with new products being launched in this
financial year. Also, new markets are being pursued, in particular, Eastern
Europe, and a new subsidiary was established last month in the Czech Republic.
We have experienced economic difficulties before; we intend to emerge from the
present situation as a stronger company.'
Sir David McMurtry
Chairman & Chief Executive
Registered office. New Mills, Wotton-under-Edge, Gloucestershire GL12 8JR
Telephone. 01453 524524
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