As Renishaw (LSE: RSW) marks its 40th anniversary, it also has another reason to celebrate: a record year for revenues, at £346.9 million.
The specialist engineer, which produces measurement and sensor devices that are used across a wide range of industries, saw gross profits increase to £182 million for the six months ending June 30.
But total operating profits actually slipped 5% to £81.9 million, Renishaw reported, as the overall cost of sales climbed and general distribution costs increased. Renishaw saw a 12% increase in distribution costs as it opened its 11th office in China and recruited another 94 sales and marketing staff.
A company like Renishaw relies on innovation, and must support that by spending on research and development and the plants and equipment to build its metrology devices.
For the six-month period, Renishaw invested £28 million in property, plant and machinery expenses across England, Wales and Ireland. It also reportedly spent another £51.8 million on engineering, research and development, and manufacturing processes.
Renishaw reported adjusted earnings per share was 91.4 pence, down from 95.6p last year. Renishaw also declared a final dividend of about 29p net per share, resulting in a total dividend for the year of 40p net per share.
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> Jill does not own shares in any company mentioned. The Motley Fool has recommended shares in Renishaw.