Spectris PLC Trading Update (0609A)
May 24 2019 - 2:00AM
UK Regulatory
TIDMSXS
RNS Number : 0609A
Spectris PLC
24 May 2019
SPECTRIS PLC
TRADING UPDATE
24 May 2019 - Spectris plc (SXS: LSE), the
productivity-enhancing instrumentation and controls company, issues
a trading update covering the four months to 30 April 2019 ('the
period').
TRADING UPDATE
Group performance for the period has been in line with
expectations.
Group like-for-like(1) ('LFL') sales increased by 3%, despite
the anticipated moderation in certain end markets. Growth from
acquisitions, net of disposals, contributed a further 1% and
foreign currency exchange movements increased sales by 2%,
resulting in a 6% increase in reported sales in the period.
The Group continues to be highly cash generative, with a
conversion of over 100% for the period, and maintains a strong
financial position. Net debt at the end of April was GBP265
million, a decrease of
GBP32 million since the year end, after including capex of GBP28
million in the period.
By segment, there was strong LFL growth from In-line
Instrumentation and in Materials Analysis, despite continued
challenges at Concept Life Sciences. LFL sales declined in Test and
Measurement and Industrial Controls. The LFL sales decline in Test
and Measurement reflected a tough comparator in sales to the
automotive industry in Europe compared with 2018, and Industrial
Controls was impacted by
US-China tariffs and slowing US industrial production. From an
end market perspective, growth was driven by demand from the energy
and metals, minerals and mining industries as well as sales into
academic research and semiconductor customers. Regionally, LFL
sales increased notably in Asia partly offset by lower LFL sales
into North America, whilst sales into Europe were flat
year-on-year.
The Group remains focused on implementing the initiatives under
its profit improvement programme and is on track to deliver the
expected GBP15-20 million of benefits in 2019.
SUMMARY AND OUTLOOK
Overall, performance remains consistent with expectations for
the full year, with the benefits from the profit improvement
programme increasing our normal second half weighting. While we
note some challenges due to macro-economic and geopolitical
uncertainties, we continue to focus on driving sales growth and
focusing on what we can control - delivering our plan to enhance
margins. In addition, our strategic review work has progressed and
highlights the opportunities our portfolio offers. We look forward
to providing more insights into our businesses at our upcoming
capital markets day on 6 June.
CONFERENCE CALL
A conference call for analysts and investors will be hosted by
Andrew Heath, Chief Executive, and
Derek Harding, Chief Financial Officer, at 07.45 today to
discuss this statement.
To access the call, please dial +44 (0) 333 300 0804, toll free
0800 358 9473 - Pin code: 82951836#.
Or for replay, please dial +44 (0) 333 300 0819, toll free 0800
358 2049 - Pin code: 301287433#.
Spectris will publish its half-year results for the six months
ending 30 June 2019 on 30 July 2019.
(1) At constant exchange rates and presenting the impact of
acquisitions and disposals on a comparable basis
Contacts:
Spectris plc
Siobhán Andrews, Head of Corporate Affairs +44 1784 485325
FTI Consulting
Richard Mountain / Susanne Yule +44 203 727 1374
ABOUT SPECTRIS
Spectris plc is a leading supplier of productivity-enhancing
instrumentation and controls. The Company's products, technologies
and services help customers to improve product quality and
performance, improve core manufacturing processes, reduce downtime
and wastage and reduce time to market. Its global customer base
spans a diverse range of end-user markets. Spectris operates across
four business segments which reflect the applications and
industries it serves: Materials Analysis, Test and Measurement,
In-line Instrumentation and Industrial Controls. Headquartered in
Egham, Surrey, United Kingdom, the Company employs approximately
10,000 people located in more than 30 countries. For more
information, visit www.spectris.com.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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