Key highlights Q1 2025 Strong start to the year as the group reported revenues of £173.9m (+6% yoy, +4% CCY) and an improved profit performance with an Adjusted PBT of £34m (+22% yoy). Divisionally, we note revenue growth to £167.5m (+7% yoy) in Manufacturing technologies and £6.4m (-16% yoy) in Analytical instruments and medical devices. In Manufacturing technologies there was an improved performance across the Americas and EMEA compared to Q1 2024; however, APAC was lower yoy primarily due to strong sales in consumer electronics in the prior period. Position encoders for the semicon manufacturing market saw strong growth in the quarter and additive manufacturing also performed strongly with a decent order book for FY25, while demand for industrial metrology was lower yoy driven by weakness in APAC. Analytical instruments and medical devices saw revenues reduce -16% yoy due to the phasing of spectroscopy products. The group remains in a robust financial position with £276.1m in net cash and cash equivalent and bank deposits, compared to £217.8m at 30 June 2024. Outlook: Solid start to the year despite mixed trading conditions. Management are cautious on calling the strong growth in encoder products for the semiconductor market as the point of recovery, and remain cautious on the demand outlook for the remainder of FY25 for this end market. However, there a number of growth opportunities, cost management initiatives and productivity improvements that can be achieved and will drive progress towards its margin objectives and help deliver "solid overall revenue growth" in line with boards expectations. Next catalyst: H1 2024/25 will be released on 13 February. As per our forecasts, the shares trade on FY25E PE 21.7x and EV/EBITDA of 13.5x falling to 19.5x PE in FY26E and 12.1x EV/EBITDA.