British precision engineering firm Renishaw, a key player in the supply chains of Apple and other tech companies, has seen more shares sold amidst semiconductor uptake concerns
Warnings around continued computer chip shortages has seen the Renishaw share price drop by 1 per cent to £34.84, brought by selling of stock over the past year, reports The Times.
Another factor in the price decrease is uncertainty around the company ownership’s future, which has turned investors away.
“We have recently seen a weakening in order intake from the semiconductor and electronics sectors and general market sentiment is becoming more cautious,” said a Renishaw spokesperson.
“In light of this, we are managing costs carefully and focusing on productivity.”
Founders Sir David McMurtry and John Deer announced intentions of selling the company last year, but no terms could be met despite interest from the likes of Siemens.
Now worth £2.5bn, Renishaw stocks got to as high as £64 a share due to the prospects of a sale.
Despite market uncertainty, the manufacturer announced record pre-tax profits being up 37 per cent at £163m on revenues 19 per cent higher at £671m, for the year to the end of June.
A big part of this success has been a focus towards automation, to mitigate production slowdown.
Renishaw executive chairman McMurtry commented: “Our performance has been built on years of strategic focus.”
Since the height of the COVID-19 pandemic, semiconductor supply chains have been slowed down due to economies having to navigate a turbulent post-pandemic landscape, which in turn is impacting manufacturing companies generally.
Related:
Ditching onshoring to create a secure semiconductor supply chain — Imagination Technologies and Global Counsel call for the UK to leverage its R&D and IP advantages to create a secure semiconductor supply chain.
Overcoming the chip shortage with extreme data processing — During the 43rd edition of the IT Press Tour in Tel Aviv, Pliops explained how it is helping its customers overcome chip shortages and scaling issues with extreme data processing.
