Presentation: June 2023 annual results

2023

final results

19 September 2023

Revised date for publication of results

A matter arose late in the audit process that required a few extra days for

the company and its auditor to resolve.

The matter was not material to the financial results.

Financial summary

Good growth from systems sales, offset by weaker demand from the semicon equipment sector

Revenue growth of 3% to £688.6m

• Revenue 1% lower at constant currency
• Growth in additive manufacturing (AM) and industrial metrology
• Weaker demand for position encoders for semiconductor manufacturing equipment

Regional performance

• APAC down 4% at constant currency - most impacted by semicon slow-down, but delivered good growth in industrial metrology
• EMEA grew 3% at constant currency - growth in all businesses, most notably in additive manufacturing
• Americas flat at constant currency - growth in industrial metrology, additive and neurological offset by weaker position encoder demand

Half-year revenue £m

400

350

300												69.1	79.2	83.6	77.9
								67.0
	65.4
250
	67.2	63.6	51.7	54.7
						95.5	110.3	102.4	114.1
200									94.6
100.1						74.5
150		101.2	89.0	78.3
100
131.2					120.8	125.9	148.8	160.6	156.4	161.7	148.9
50	108.9
106.8
0
2019 H1	2019 H2		2020 H1	2020 H2		2021 H1	2021 H2	2022 H1	2022 H2	2023 H1	2023 H2
					APAC		EMEA			Americas

	FY	FY		Const.
Half-year revenue	2023	2022	Change	FX
	£m	£m	%	%
APAC	310.6	317.0	-2%	-4%
EMEA	216.5	205.8	5%	3%
Americas	161.5	148.3	9%	0%
Group	688.6	671.1	3%	-1%

Slide 3

Profitability

Maintaining our focus on long-term growth

Adjusted profit before tax 14% lower at £141.0m

• Return on sales reduced to 20% (24% last year)
• • 1% reduction in gross margins before engineering costs: employee pay inflation & lower recovery of fixed production overheads, partially offset by currency and pricing
  • Engineering, distribution and administration costs up 12%: targeted recruitment, plus investment in employee pay in all areas to improve employee retention, and other inflationary pressures

Key metrics - 2023 vs 2022

	2023	2022	Change
	£m	£m	%
Revenue	688.6	671.1	3%
Adjusted profit	141.0	163.7	-14%
before tax
Statutory profit	145.1	145.6	0%
before tax

Key cost items - 2023 vs 2022

	2023		2022		Change
	£m	%	£m	%	%
Revenue	688.6	100	671.1	100	3%

Manufacturing technologies

	2023	2022	Change
	£m	£m	%
Revenue	648.2	634.6	2%
Adjusted	125.5	158.6	-21%
operating profit

Analytical instruments & medical devices

	2023	2022	Change
	£m	£m	%
Revenue	40.3	36.5	10%
Adjusted	4.9	2.8	75%
operating profit

Cost of sales	247.7	36	235.0	35	5%
Engineering	90.2	13	78.6	12	15%
Distribution	137.7	20	122.5	18	12%
Administration	75.0	11	69.7	10	8%

Slide 4

Lab & clinic

Our markets	Analytical instruments &	7%
		medical devices
				Research
Machine shop,		Healthcare
	Others
robotics & automation
77%	Heavy
Diverse end-use markets,
		Energy

supplied through machine builders, distributors and direct to end users

Aerospace

Routes to market

End user3

MachineAutomotive builder1

Distributor2

16%

Semicon

equipment

Consumer electronics

Precision

manufacturing

Semicon equipment

Supplied through machine builders to semicon fabs globally, no direct connection to end-user industry

Note:

Consumer electronics precision parts manufacturing now separated from semicon equipment (previously grouped together)

	Source: Company information - end-use industry revenue shares are unaudited management estimates	Increasing share of Group revenues (FY23 vs FY22)
	Notes:
Slide 5	1	Machine builders and their exclusive dealers
2	Including agents, independent system integrators and automation suppliers	Reducing share of Group revenues (FY23 vs FY22)
	3	Market shares are unaudited management estimates