Final Results

Spectris PLC 22 February 2008 Embargoed until 07.00, Friday 22 February 2008 2007 PRELIMINARY RESULTS Spectris plc, the productivity-enhancing instrumentation and controls company, announces preliminary results for the year ended 31 December 2007. 2007 2006 Change Change at CER** Sales from continuing businesses (£m)# 659.8 642.6 +2.7% +6.5% Adjusted operating profit from 104.3 83.2 +25% +35% continuing businesses (£m)# * Adjusted operating profit (£m) * 104.8 85.7 +22% Adjusted profit before tax (£m)* 98.0 76.3 +28% Adjusted earnings per share (pence)* 58.1 43.7 +33% Dividend (pence) 21.0 17.5 +20% Statutory Sales (£m) 668.4 684.5 -2.4% Profit before tax (£m) 118.1 85.6 +38% Basic earnings per share (pence) 70.9 49.4 +44% # Continuing businesses exclude businesses divested * Adjusted figures are stated before amortisation of acquisition-related intangible assets, goodwill impairment charges, profits or losses on termination or disposal of businesses or major fixed assets, unrealised changes in the fair value of financial instruments, related tax effects and other tax items which do not form part of the underlying tax rate **Constant exchange rates Highlights • Strong performance - sales, profits and cash flow all increase • Growth across all sectors and major geographies • Operating margins of 15.8% • Business groupings aligned with applications and end user industries • Strategic focus on platforms for growth Commenting on the results, John O'Higgins, Chief Executive, said: '2007 was a successful year, in which the company delivered a return on sales in excess of 15%. Our broad spread of geographies and end user markets, and strong product offering, ensure that we are well placed to maintain good progress despite an economic outlook which is less certain. The current year has started well, with encouraging prospects across the multiple industries and regions we serve.' CHAIRMAN'S STATEMENT Overview Spectris performed well in 2007, with sales, profits and earnings per share all increasing compared with the prior year, after adjusting for disposals and acquisitions. Total group sales were £668.4 million compared with £684.5 million in the prior year. Excluding the effect of disposals during the first half of 2007, sales from continuing businesses increased by 2.7% to £659.8 million (2006: £642.6 million), or 6.5% at constant currencies. Total group adjusted operating profit increased by 22% to £104.8 million (2006: £85.7 million)(S). Group operating margins increased by 2.9 percentage points to 15.8% of sales. Profit before tax increased by 28% to £98.0 million (2006: £76.3 million) and earnings per share increased by 33% to 58.1p (2006: 43.7p). Operating cash conversion was strong, with 99% of operating profit converted to operating cash. Net proceeds from disposals were £29.8 million. The buy-back of 8.9 million shares during 2007 absorbed £79.2 million, with the result that net debt at the end of the year was £77.3 million, compared with £71.7 million at the end of December 2006. Net interest costs were £6.7 million, giving an annualised cover of 15.6 times. The Board proposes to pay a final dividend of 15.25p which, combined with the interim dividend of 5.75p, gives a total of 21.0p (2006: 17.5p), an increase of 20%. The dividend will be paid on 20 June 2008 to shareholders on the register at 30 May 2008. Board changes As previously announced, Andrew Given retired at the May 2007 AGM and John Hughes joined the Board as a non-executive director in June. Stephen Harris, Business Group Director, resigned from the Board on 31 January 2008. I shall be standing down at the May 2008 AGM, as announced in November 2006, after twenty years with the company and will be succeeded as Chairman by John Hughes. To him, to the rest of the Board, and to everyone at Spectris, I convey my thanks and best wishes for continuing success and prosperity. Outlook 2007 was a successful year, in which the company delivered a return on sales in excess of 15%. Our broad spread of geographies and end user markets, and strong product offering, ensure that we are well placed to maintain good progress despite an economic outlook which is less certain. The current year has started well, with encouraging prospects across the multiple industries and regions we serve. John Poulter Chairman (S)Unless otherwise stated, all sales and operating profit figures in the narrative are on a continuing businesses basis and exclude the businesses divested. Figures for operating profit, profit before tax and earnings per share are adjusted measures - for explanation of adjusted figures and reconciliation to the statutory reported figures see Note 2. CHIEF EXECUTIVE'S STATEMENT Overview Spectris delivered a strong performance in 2007, with sales, profits, operating margins and cash flow from continuing businesses all improving compared with the prior year. At constant currencies, sales increased by 6.5%, including 1% from acquisitions, and operating profit increased by 35%. The major geographic regions again showed growth during 2007. The strongest growth was seen in Asia, where sales increased by 7% at constant currencies, led by China. Sales in Europe increased by over 3% at constant currencies. Sales in North America increased by 6%, helped by the acquisition of the IPI business acquired in 2006. Sales in the rest of the world increased by 32%, reflecting the growing importance of industrialising markets such as Russia, South America and Africa. Operating margins improved to 15.8% (2006: 12.9%), as the restructuring and other business improvement actions taken in prior years continued to deliver results. Strategy Our objective is to deliver shareholder value over the long term by supplying productivity-enhancing solutions for our customers. Our strategy is based on five elements: strengthening market positions through innovation; increasing regional expansion with the focus on emerging markets; growing existing businesses through acquisition; focusing on operational excellence; building our presence in key strategic growth areas. In order to give better clarity to our operations, we have re-aligned the activities of our business segments to reflect more closely the applications and end user industries we serve. Going forward, our businesses will be reported in four segments. These are: Materials Analysis, Test & Measurement, In-line Instrumentation and Industrial Controls. Figures for prior years have been restated accordingly. Figures at group level and key performance indicators are not affected by these changes. For comparative purposes, the key results for the group based upon the prior segmentation are shown in Note 2. Two acquisitions were made during the second half of the year. On 2 July, Particle Measuring Systems acquired the distribution activities of Quest Technologies in Singapore, giving it an increased presence in Asia. On 1 November, Servomex acquired Controle Analytique, a leading provider of specialist gas analysis products based in Canada. The acquisition enables Servomex to increase its product offering in the global industrial gas market and also provides opportunities for the company to meet the needs of customers in the semiconductor market. Research and development expenditure increased to £45.2 million, which represents 7% of group sales, enabling the businesses to maintain their leading market positions and continue to meet the productivity challenges their customers face. Operating review Materials Analysis Materials Analysis provides a wide range of analytical instrumentation and systems for particle and material characterisation. The companies in this segment are Malvern Instruments, PANalytical and Particle Measuring Systems. These businesses generally sell directly to global end user customers and provide aftermarket services such as technical support, instrument calibration and replacement consumables. Applications are typically in batch process manufacturing industries and research and development laboratories. Industries served include semiconductor, pharmaceuticals and life sciences, with applications also in metals, minerals and mining. The total market for materials analysis instrumentation is estimated to be around £9 billion. Sales in Materials Analysis increased by 4% to £213.8 million, and by 8% at constant currencies. Operating profit increased by 15% to £34.8 million and operating margins improved by 1.6 percentage points to 16.3%. Restructuring charges were £0.1 million, compared with £0.5 million in the prior year. Sales to the metals, minerals and mining industries represented 33% of total sales in 2007, with pharmaceuticals and life sciences representing 22%, research and development applications 17%, semiconductors and electronics 10%, and other industries 18%. The metals and mining industries continued to grow, particularly in Australia, South America and southern Africa, benefiting Malvern and PANalytical. Malvern's in-line particle characterisation products saw strong growth in areas such as cement and print toners as the productivity benefits achieved by existing customers led them to extend the use of these products into their other facilities. Demand from the pharmaceutical industry continued to be strong. Malvern's recently launched Morphologi G3 product, an automated particle characterisation system, has been positively received by large pharmaceutical manufacturers, with a significant number of orders already placed. Particle characterisation is critical to the pharmaceutical industry, from protein size and conformation analysis at the discovery stage through to on-line analysis during manufacture. Both Malvern and PANalytical have seen good growth for their instrumentation from emerging regions such as India and China, where the establishment of R&D and production centres by leading pharmaceutical manufacturers is increasing, as is the production of drugs by generic manufacturers. At Particle Measuring Systems good growth in contamination detection systems for the pharmaceutical industry compensated for cyclically weaker demand in the semiconductor industry. Investment in research and development continued in the semiconductor industry, benefiting PANalytical. During the year, Particle Measuring Systems launched the AirSentry II product for contamination monitoring in the semiconductor and electronics industries. This product features a patented ion mobility spectrometry technique and is used for real-time monitoring of airborne molecular contamination, a critical factor in semiconductor processing and hard disk drive and liquid crystal display manufacturing. Test and Measurement Test and Measurement supplies test and measuring equipment for research and development, principally to the aerospace and automotive industries. Further applications are in consumer electronics and the environmental monitoring market. The companies in this segment are Bruel & Kjaer Sound and Vibration and HBM. Products include sensors and controls for noise, vibration, weight and stress measurement, data acquisition hardware and software, and advanced data analysis applications. Services such as consultancy and instrument calibration and repair are also offered. The general industrial test and measurement market is estimated at around £2 billion. Sales in Test and Measurement increased by 3% to £207.5 million, and by 5% at constant currencies. Operating profit increased by 39% to £26.2 million and operating margins improved by 3.3 percentage points to 12.6%. Restructuring charges were £0.1 million compared with £2.1 million in the prior year. Sales to the transportation industry (primarily automotive and aerospace) represented 32% of total sales in 2007, with machine builders representing 24%, environmental monitoring 11%, semiconductor, telecoms and electronics 8%, research and development 7% and other industries 18%. Demand from the automotive industry continued to grow, particularly in Europe, as manufacturers maintained their new model development programmes and endeavoured to meet the challenge of testing prototypes in ever shorter time frames. Bruel & Kjaer increased sales to the leading automotive manufacturers and also grew their support and calibration services offering. In September HBM launched the QuantumX data acquisition system for test and measurement markets, particularly the automotive and aerospace markets, and a significant order has already been received from the BMW Group for the new engine, gearbox and power train test stands being developed at their Research and Innovation Center in Munich. In the aerospace industry, the increased use of new carbon fibre composite materials in lightweight aerospace structures is setting new demands for structural testing and stress analysis, benefiting HBM. In environmental monitoring, Bruel & Kjaer's airport noise monitoring system was selected by the Metropolitan Washington Airports Authority, serving Reagan National Airport and Washington Dulles International Airport. The company also installed an airport noise and flight track monitoring system at Zurich airport and noise monitoring systems in several cities in China. In-line Instrumentation In-line Instrumentation provides process analytical solutions, asset monitoring and control, gauging, and on-line controls for both primary processing industries (oil and gas, energy generation, petrochemicals, pulp and paper) and the converting markets (plastics, rubber, film). The companies in this segment are Beta LaserMike, Bruel & Kjaer Vibro, BTG, Fusion UV Systems, NDC Infrared Engineering and Servomex. These businesses sell directly to global end user customers and systems integrators and the majority of sales are for new and upgraded production facilities. All businesses provide aftermarket services. The global market for in-line instrumentation is estimated to be in excess of £1 billion. Sales in In-line Instrumentation increased by 2% to £200.2 million, and by 6% at constant currencies. Operating profit increased by 32% to £34.7 million and operating margins improved by 3.9 percentage points to 17.3%. Restructuring charges were £0.7 million in 2007, compared with £5.1 million in the prior year. Sales to the pulp and paper industry represented 36% of total sales in 2007, with the converting businesses representing 29%, energy generation 12% and other industries 23%. Investment in capital-intensive facilities in the continuous process industries was strong. In the pulp and paper industry, the need to reduce production costs and become more energy-efficient has led to a shift in production facilities from the west to regions such as South America and Asia. This has benefited BTG, particularly the Duroblade business where, in response to the industry focus on paper quality, the company has moved from producing ceramic blades to developing blades tailored for different types of paper applications. In the past two years, BTG has launched a number of new products for metering and doctoring solutions for specific coating processes and is a recognised innovator in this market. Good demand in the energy and petrochemical markets benefited Bruel & Kjaer Vibro and Servomex, as producers expanded their processing facilities in the light of higher oil prices. Bruel & Kjaer Vibro received a number of high value orders from oil and gas customers for its condition monitoring systems. At Servomex, demand for gas analysers was strong in the hydrocarbon business in North America and Canada and in the industrial gas business in Europe and the Middle East. On 1 November, Servomex acquired Controle Analytique, a leading provider of specialist gas analysis products based in Canada, enabling the company to increase its product offering in the global industrial gas market. In the converting industry, Fusion UV Systems, NDC and Beta LaserMike all saw good sales growth. Fusion UV Systems benefited from continued growth in the flat panel display market, one of the fastest-growing sectors in the electronics industry, as the quality and size of flat panel televisions increases. Fusion's UV technology is used to cure the anti-reflective functionalised film applied to the screen. Good demand from the converting market in China benefited both Beta LaserMike and NDC in their respective markets. Industrial Controls Industrial Controls supplies automation and controls for general manufacturing processes. The companies in this segment are Microscan and Red Lion Controls, which supply bar code scanners, panel meters, human machine interfaces, industrial controllers and networking products. This segment sells indirectly to end users via distributors as well as directly to original equipment manufacturers (OEMs), with a significant proportion of repeat business from existing customers. The total market for industrial controls is estimated to be in excess of £10 billion. Sales in Industrial Controls were £38.3 million, compared with £38.9 million in 2006. Sales increased by 6% at constant currencies. Operating profit increased by 10% to £8.6 million and operating margins improved by 2.4 percentage points to 22.5%. Sales through distributor channels represented 82% of total sales in 2007, with the semiconductor, electronics and telecoms industries representing 7%, pharmaceuticals 4% and other industries 7%. Microscan saw strong sales growth in Europe and Asia, in part due to the increasing move of electronics assembly operations to Asia, particularly China, Taiwan and Korea. The company launched the Quadrus MINI Velocity scanner, the world's fastest mini imager, which can read up to 45 bar codes per second. Red Lion Controls also grew sales internationally, with its human machine interface and data station products proving particularly successful. Human machine interfaces are being used increasingly in industrial applications, displacing traditional analogue displays, due to the increased operational data and better interfacing with other plant systems they are able to provide. Looking ahead Over the longer term we are well positioned, both in terms of geographic exposure and end user markets. We have a clearly defined strategy which will deliver both top- line and bottom-line performance. John O'Higgins Chief Executive FINANCIAL REVIEW Introduction Spectris uses adjusted figures as key performance measures in addition to those reported under IFRS. Adjusted figures are stated before amortisation of acquisition-related intangible assets, goodwill impairment charges, profits or losses on the termination or disposal of businesses or major fixed assets, unrealised changes in the fair value of financial instruments, related tax effects and other tax items which do not form part of the underlying tax rate. Unless otherwise stated all profit and earnings figures referred to below are adjusted measures. The Spectrum and Ircon businesses were divested in February 2007 and June 2007 respectively (as described further below). The results of these two businesses are not considered to be sufficiently material to be presented as discontinued operations under IFRS. However, in order to aid understanding of the results for the ongoing business, references below to the sales and operating profit results for 'continuing businesses' exclude the results of these two businesses and the business sold in April 2006 (Arcom). Operating performance 2007 2006 Increase/ (Decrease) Total group Sales (£m) 668.4 684.5 (2.4%) Operating profit (£m) 104.8 85.7 22% Operating margin 15.7% 12.5% 3.2pp Continuing businesses Sales (£m) 659.8 642.6 2.7% Operating profit (£m) 104.3 83.2 25% Operating margin 15.8% 12.9% 2.9pp Total group sales decreased by 2.4% (1.3% increase at constant currencies) and sales in continuing businesses increased by 2.7% (6.5% at constant currencies). The year-on-year impact on sales from acquisitions (acquired in 2006 and 2007) was approximately £6.8 million or 1% of sales. Adjusted operating profit rose by 22% overall (32% at constant currencies) and by 25% (35% at constant currencies) in continuing businesses, with operating margins improving from 12.5% to 15.7% overall, and from 12.9% to 15.8% on a continuing businesses basis. This growth in operating profit was driven by the increase in sales, an increase in restructuring benefits, a decrease in restructuring costs, and good cost control. The year-on-year impact on profits from acquisitions was approximately £1.3 million or 1% of profits. Net interest costs, including IAS 19 pension charges but excluding derivative fair value movements, reduced from £9.4 million to £6.8 million. After taking account of lower interest costs, adjusted profit before tax increased by 28% from £76.3 million to £98.0 million. Unadjusted operating profit, after including goodwill impairment charges of nil (2006: £1.2 million) and acquisition-related intangible asset amortisation of £1.9 million (2006: £1.8 million), increased by 24% from £82.7 million to £102.9 million. Unadjusted profit before tax increased by 38% from £85.6 million to £118.1 million. In addition to goodwill impairment charges, acquisition-related intangible asset amortisation charges, and profit on disposal of businesses, the 2007 unadjusted result includes an unrealised gain of £3.0 million on the group's cross-currency interest rate swaps (2006: unrealised gain of £2.8 million). Acquisitions and disposals During the year, two of the group's businesses made acquisitions. The total consideration, including acquisition expenses and net debt acquired, as well as deferred and contingent consideration expected to be paid in future years, was £6.6 million. The largest of these acquisitions took place close to the end of 2007. These acquisitions contributed £0.6 million of sales during the year. Prior year acquisitions contributed £6.2 million. In February 2007, Spectris sold the Spectrum business to Illinois Tools Works Inc and in June 2007 the Ircon business to Fluke Electronics Corporation for total net proceeds (after taking account of transaction costs) of £29.8 million, giving rise to a profit on disposal of £19.0 million (2006: £9.5 million). Taxation The effective tax rate on profits was 28.0% (2006: 28.8%) compared with the weighted average statutory tax rate of 32.3% (2006: 32.1%). The group benefited from utilising brought forward tax losses which had not previously been recognised on the balance sheet, and from the favourable closure of prior year tax returns. The weighted average statutory tax rate is expected to reduce in future by approximately two percentage points in line with reduced corporate tax rates on profits in several countries where the group operates, principally Germany. Whilst the effective tax rate is expected to move closer to the weighted average rate over time, it is not expected to increase substantially in the near future. Earnings per share Adjusted earnings per share increased by 33% from 43.7p to 58.1p, reflecting the net impact of a 28% increase in adjusted profit before tax and the reduced tax rates. Basic earnings per share increased by 44% from 49.4p to 70.9p. The differences between the two measures are shown in the table below. 2007 2006 Pence Pence Basic earnings per share 70.9 49.4 Goodwill impairment charges and acquisition-related intangible 1.6 2.4 asset amortisation Profit on disposal of business (15.6) (7.6) Unrealised changes in fair value of financial instruments (2.4) (2.3) Tax effect of the above and other tax items that do not form part 3.6 1.8 of the underlying tax rate ____ ____ Adjusted earnings per share 58.1 43.7 The weighted average number of shares outstanding during the year decreased from 124.3 million to 121.6 million. This decrease arose largely as a result of the share buy-back programme. Cash Flow 2007 2006 Operating cash flow £m £m Adjusted operating profit 104.8 85.7 Add back: depreciation 13.1 13.2 Working capital movement/other (1.5) 3.1 Net cash flow from operating activities before capital expenditure 116.4 102.0 Capital expenditure (12.7) (10.5) Operating cash flow 103.7 91.5 Cash conversion 99% 107% Non-operating cash flow Tax paid (23.8) (21.5) Net interest paid (6.3) (11.2) Dividends paid (22.2) (20.2) Acquisitions (6.0) (13.6) Disposals 29.8 13.3 Share buy-back (79.2) - Exercise of share options 4.1 5.3 (Purchase)/sale of own shares by Employee Benefit Trust (1.6) 0.9 Exchange/other (4.1) 3.7 Total non-operating cash flow (109.3) (43.3) Operating cash flow 103.7 91.5 Movement in net debt (5.6) 48.2 Cash conversion of operating profit to operating cash was 99% (2006: 107%). This was achieved mainly through continued control of working capital. The year end working capital expressed as a percentage of sales reduced from 14.8% to 14.2%. Average working capital expressed as a percentage of sales reduced from 13.7% to 13.5%. Capital expenditure during the year equated to 1.9% of sales (2006: 1.5%) and, at £12.7 million (2006: £10.5 million), was 97% of depreciation (2006: 80%). The level of tax paid in 2007 was higher than in 2006 due primarily to the increase in profits. Overall, net debt increased by £5.6 million (2006: reduction of £48.2 million) from £71.7 million to £77.3 million. Interest cost, excluding the financing charge arising from IAS 19, was covered by adjusted operating profit 15.6 times (2006: 9.4 times), providing significant headroom over and above banking covenants which require a minimum of 3 times cover. Financing and Treasury The group finances its operations from both retained earnings and third-party borrowings, the majority of which are currently at fixed rates of interest. The group's principal borrowings relate to its 2000 and 2003 US Private Placement loan notes. The $100 million 2003 US Private Placement has been swapped into euro-denominated borrowings using a cross-currency interest rate swap. At the year end, 96% of group borrowings were at fixed interest rates (2006: 97%). The ageing profile at the year end showed that 3% of debt is due to mature within one year (2006: 4%), 31% of debt is due to mature in between one and five years (2006: 31%) and the remaining 66% in more than five years (2006: 65%). Share buy-back The group completed the £75 million share buy-back programme announced in February 2007 in November 2007, and subsequently extended the programme by additional share repurchases up to the limit granted by the shareholders at the 2007 AGM. Currency The group has both translational and transactional currency exposures. Translational exposures arise on the translation of overseas company results into sterling. Transactional exposures arise where the currency of sale or purchase invoices differs from the functional currency in which each company prepares its local accounts. The transactional exposures include situations where foreign currency denominated trade debtor, trade creditor and cash balances are held. The largest transactional exposures are to the US dollar and, to a lesser extent, the euro and the Japanese yen. The largest translational exposures are to the US dollar, the euro and the Danish krone. The table below shows the key average exchange rates during 2007 and 2006. Translational currency exposures are not hedged. 2007 2006 (average) (average) US $ 2.00 1.84 Euro 1.46 1.47 Yen 236 214 Forward exchange contracts are used to hedge forecast sale transactions where there is reasonable certainty of an exposure. At 31 December 2007, approximately 61% of the estimated US dollar and Japanese yen exposures for 2008 were hedged using forward exchange contacts. Defined benefit pension schemes Operating profit includes a defined benefit pension scheme current service charge of £0.9 million (2006: £0.8 million). The net pension liability in the balance sheet (before taking account of the related deferred tax asset) has reduced to £11.1 million (2006: £18.8 million), largely as a consequence of cash contributions into the schemes and actuarial gains on the scheme assets. During 2007, the group made cash contributions into the defined benefit pension scheme amounting to £3.1 million (2006: £3.3 million). Clive Watson Group Finance Director Contact: John O'Higgins, Chief Executive, Spectris plc Tel: 01784 470470 Clive Watson, Group Finance Director, Spectris plc Tel: 01784 470470 Richard Mountain, Financial Dynamics Tel: 020 7269 7186 A table of results is attached. The meeting with analysts will be available as a live webcast on the company's website at www.spectris.com, commencing at 08.30, and a recording will be posted on the website shortly after the meeting. Copies of this notice are available to the public from the registered office at Station Road, Egham, Surrey TW20 9NP, and on the company's website at www.spectris.com. CONSOLIDATED INCOME STATEMENT For the year ended 31 December 2007 Notes 2007 2006 £m £m Continuing operations 3 Revenue 668.4 684.5 Cost of sales (283.8) (288.7) Gross profit 384.6 395.8 Indirect production and engineering expenses (57.4) (60.8) Sales and marketing expenses (158.0) (171.6) Administrative expenses (66.3) (80.7) 102.9 82.7 3 Operating profit Profit on disposal of businesses 19.0 9.5 4 Financial income 9.6 9.0 4 Finance costs (13.4) (15.6) Profit before tax 118.1 85.6 5 Taxation - UK (2.6) (0.5) 5 Taxation - Overseas (29.3) (23.7) Total taxation (31.9) (24.2) Profit after tax for the year from continuing operations 86.2 61.4 attributable to equity shareholders 7 Basic earnings per share 70.9p 49.4p 7 Diluted earnings per share 70.6p 49.2p 6 Interim dividends paid and final dividends proposed for the 21.0p 17.5p year (per share) 6 Dividends paid during the year (per share) 18.3p 16.2p Spectris uses adjusted figures as key performance measures in addition to those reported under adopted IFRS. Adjusted figures are stated before amortisation of acquisition-related intangible assets, goodwill impairment charges, profits or losses on termination or disposal of businesses or major fixed assets, unrealised changes in the fair value of financial instruments, related tax effects and other tax items which do not form part of the underlying tax rate. Reconciliations showing how the adjusted performance measures are derived from those reported under adopted IFRS are set out in Note 2. CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE For the year ended 31 December 2007 2007 2006 £m £m Net (loss)/gain on effective portion of changes in fair value of (1.1) 1.7 forward exchange contracts Associated deferred tax on changes in fair value of forward exchange 0.3 (0.5) contracts Net (loss)/gain on changes in fair value of effective portion of net (6.3) 7.6 investment hedges Actuarial gains arising on pension schemes 5.9 2.2 Current and deferred tax on actuarial gains on pension schemes (3.7) (0.6) Foreign exchange movements on translation of overseas operations 26.0 (19.9) Current and deferred tax on foreign exchange movements recognised (0.6) (0.1) directly in equity Net income/(expense) recognised in equity in respect of year 20.5 (9.6) Profit for the year 86.2 61.4 Total recognised income and expense for the year attributable to 106.7 51.8 equity shareholders CONSOLIDATED BALANCE SHEET At 31 December 2007 2007 2006 £m £m Assets Non-current assets Goodwill 223.1 207.4 Other intangible assets 12.2 8.0 Property, plant & equipment 87.7 83.2 Deferred tax asset 25.7 37.6 348.7 336.2 Current assets Inventories 92.8 81.6 Taxation recoverable - 0.5 Trade and other receivables 153.7 145.4 Derivative financial instruments 0.1 1.3 Cash and cash equivalents 51.4 51.0 Assets held for sale 1.2 17.3 299.2 297.1 Total assets 647.9 633.3 Liabilities Current liabilities Short-term borrowings (4.4) (4.3) Trade and other payables (141.7) (124.2) Current tax liabilities (32.8) (32.9) Provisions (21.5) (21.8) Liabilities held for sale - (6.0) (200.4) (189.2) Net current assets 98.8 107.9 Non-current liabilities Medium and long-term borrowings (108.1) (108.6) Derivative financial instruments (16.1) (12.8) Other payables (8.4) (8.8) Retirement benefit obligations (11.1) (18.8) Deferred tax liability (1.0) (1.0) (144.7) (150.0) Total liabilities (345.1) (339.2) Net assets 302.8 294.1 Equity Issued share capital 6.2 6.2 Share premium 231.4 231.1 Retained earnings 63.8 74.0 Translation reserve (2.1) (21.8) Hedging reserve 0.1 1.2 Merger reserve 3.1 3.1 Capital redemption reserve 0.3 0.3 Equity shareholders' funds 302.8 294.1 Total equity and liabilities 647.9 633.3 CONSOLIDATED CASH FLOW STATEMENT For the year ended 31 December 2007 Notes 2007 2006 £m £m Cash flows from operating activities Profit after tax 86.2 61.4 Adjustments for: 5 Tax 31.9 24.2 Profit on disposal of businesses (19.0) (9.5) 4 Finance costs 13.4 15.6 4 Financial income (9.6) (9.0) Depreciation 13.1 13.2 Amortisation of intangible assets 2.0 1.9 Goodwill reduction - 1.2 (Gain)/loss on sale of property, plant & equipment (0.6) 0.5 Equity settled share-based payment expense 0.9 0.6 Operating profit before changes in working capital and 118.3 100.1 provisions Increase in trade and other receivables (2.0) (8.9) Increase in inventories (6.9) (1.0) Increase in trade and other payables 10.1 4.4 (Decrease)/increase in provisions and employee benefits (4.5) 7.4 Corporation tax paid (23.8) (21.5) Net cash from operating activities 91.2 80.5 Cash flows from investing activities Purchase of property, plant & equipment (12.7) (10.5) Proceeds from sale of property, plant & equipment 1.4 - Acquisition of businesses, net of cash acquired (6.0) (13.6) Disposal of businesses 29.8 13.3 Interest received 1.9 2.0 Net cash flows used in investing activities 14.4 (8.8) Cash flows from financing activities Interest paid (8.2) (13.2) 6 Dividends paid to equity holders of the parent (22.2) (20.2) Share options exercised by issue of share capital 0.2 1.5 Share options exercised from shares held by Employee 1.0 3.8 Benefit Trust Share options exercised from treasury shares 2.9 - (Purchase)/sale of own shares by Employee Benefit Trust (1.6) 0.9 Purchase of own shares - treasury shares (79.2) - Cancellation of cross-currency swap - (2.9) Repayment of borrowings - (65.9) Decrease in finance lease liabilities (0.1) (0.4) Net cash flows used in financing activities (107.2) (96.4) Net decrease in cash and cash equivalents (1.6) (24.7) Cash and cash equivalents at beginning of year 47.0 76.1 Effect of foreign exchange rate changes 2.0 (4.4) Cash and cash equivalents at end of year 47.4 47.0 Reconciliation of changes in cash and cash equivalents to movements in net debt 2007 2006 £m £m Net decrease in cash and cash equivalents (1.6) (24.7) Repayment of borrowings - 65.9 Decrease in finance lease liabilities 0.1 0.4 Effect of foreign exchange rate changes (4.1) 6.6 Movement in net debt (5.6) 48.2 Net debt at start of year (71.7) (119.9) Net debt at end of year (77.3) (71.7) RECONCILIATION OF MOVEMENT IN CAPITAL AND RESERVES For the year ended 31 December 2007 Capital Share Share Retained Translation Hedging Merger redemption Total capital premium earnings reserve reserve reserve reserve equity £m £m £m £m £m £m £m £m Equity at 1 January 2006 (restated)* 6.2 229.1 26.8 (9.5) (0.5) 3.1 0.3 255.5 Gains and losses - year ended 31 December 2006 Total recognised income and expense - - 62.4 (12.3) 1.7 - - 51.8 Distributions to and transactions with shareholders Equity dividends paid - - (20.2) - - - - (20.2) Share-based payments - - 0.6 - - - - 0.6 Share options exercised from shares - - 3.8 - - - - 3.8 held by Employee Benefit Trust Sale of own shares by Employee - - 0.9 - - - - 0.9 Benefit Trust Exercise of equity share options - 2.0 (0.3) - - - - 1.7 Equity at 31 December 2006 6.2 231.1 74.0 (21.8) 1.2 3.1 0.3 294.1 (restated)* Gains and losses - year ended 31 December 2007 Total recognised income and expense - - 88.1 19.7 (1.1) - - 106.7 Distributions to and transactions with shareholders Equity dividends paid - - (22.2) - - - - (22.2) Share-based payments - - 0.9 - - - - 0.9 Own shares (treasury) purchased - - (79.2) - - - - (79.2) Own shares (Employee Benefit Trust) - - (1.6) - - - - (1.6) purchased Share options exercised from own shares - - 2.9 - - - - 2.9 (treasury) purchased Share options exercised by issue of - 0.3 (0.1) - - - - 0.2 share capital Share options exercised from shares held by Employee Benefit Trust - - 1.0 - - - - 1.0 Equity at 31 December 2007 6.2 231.4 63.8 (2.1) 0.1 3.1 0.3 302.8 * An amount of £6.7m has been transferred from the Translation reserve to Retained earnings as at 1 January 2006. This reflects the cumulative translation gain that should have been recycled into Financial income and expense prior to that date. NOTES TO THE ACCOUNTS 1. PRINCIPAL ACCOUNTING POLICIES AND BASIS OF PREPARATION Spectris plc is a limited company incorporated and domiciled in the United Kingdom under the Companies Act 1985, whose shares are publicly traded on the London Stock Exchange. The group's financial statements have been prepared and approved by the directors in accordance with International Financial Reporting Standards as adopted by the EU (adopted IFRS). The financial statements are prepared rounded to the nearest hundred thousand on the historical cost basis except that derivative financial instruments are stated at fair value and assets classified as held for sale are stated at the lower of carrying amount and fair value less costs to sell. The preparation of financial statements in conformity with adopted IFRS requires management to make judgements, estimates and assumptions that affect the application of policies and the reported amount of assets and liabilities, income and expenses. The estimates and associated assumptions are continually evaluated and are based on historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates. The estimates and assumptions that have a significant effect on the carrying amount of assets and liabilities are noted within specific accounting policies. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods. The accounting policies have been applied consistently by group entities to all periods presented in these financial statements. The financial statements were authorised for issue by the directors on 22 February 2008. 2. ADJUSTED PERFORMANCE MEASURES Spectris uses adjusted figures as key performance measures in addition to those reported under adopted IFRS. Adjusted figures are stated before amortisation of acquisition-related intangible assets, goodwill impairment charges, profits or losses on termination or disposal of businesses or major fixed assets, unrealised changes in the fair value of financial instruments, related tax effects and other tax items which do not form part of the underlying tax rate (see Note 5). The business segments for which information has been included in these accounts are different from those disclosed in prior years. The results of the group based upon the 2006 segmentation are shown at the end of this Note. The new disclosures for business segments reflect the manner in which the business is currently managed by the Board of Directors. Prior year comparatives have been restated accordingly. The adjusted performance measures are derived from the reported figures under adopted IFRS as follows: Adjusted sales 2007 2006 £m £m Sales as reported under adopted IFRS 668.4 684.5 Divested businesses (8.6) (41.9) Adjusted sales for continuing businesses 659.8 642.6 Adjusted sales by segment - 2007 Materials Test & In-line Industrial 2007 Analysis Measurement Instrumentation Controls Total £m £m £m £m £m Sales as reported under adopted IFRS 213.8 207.5 208.8 38.3 668.4 Divested businesses - - (8.6) - (8.6) Adjusted sales for continuing businesses 213.8 207.5 200.2 38.3 659.8 Adjusted sales by segment - 2006 restated Materials Test & In-line Industrial 2006 Analysis Measurement Instrumentation Controls Total £m £m £m £m £m Sales as reported under adopted IFRS 205.7 201.5 234.5 42.8 684.5 Divested businesses - - (38.0) (3.9) (41.9) Adjusted sales for continuing businesses 205.7 201.5 196.5 38.9 642.6 Adjusted operating profit 2007 2006 £m £m Operating profit as reported under adopted IFRS 102.9 82.7 Amortisation of acquisition-related intangible 1.9 1.8 assets Goodwill reduction - 1.2 Adjusted operating profit 104.8 85.7 Divested businesses (0.5) (2.5) Adjusted operating profit for continuing businesses 104.3 83.2 Restructuring charges for continuing businesses 0.9 7.7 Adjusted operating profit for continuing businesses before restructuring charges 105.2 90.9 Adjusted operating profit by segment - Materials Test & In-line Industrial 2007 2007 Analysis Measurement Instrumentation Controls Total £m £m £m £m £m Segment result under adopted IFRS 33.5 26.0 34.8 8.6 102.9 Amortisation of acquisition-related intangible assets 1.3 0.2 0.4 - 1.9 Adjusted operating profit 34.8 26.2 35.2 8.6 104.8 Divested businesses - - (0.5) - (0.5) Adjusted operating profit for continuing businesses 34.8 26.2 34.7 8.6 104.3 Restructuring charges for continuing businesses 0.1 0.1 0.7 - 0.9 Adjusted operating profit for continuing businesses before restructuring charges 34.9 26.3 35.4 8.6 105.2 Adjusted operating profit by segment - Materials Test & In-line Industrial 2006 2006 restated Analysis Measurement Instrumentation Controls Total £m £m £m £m £m Segment result under adopted IFRS 28.2 18.4 28.1 8.0 82.7 Amortisation of acquisition-related intangible assets 1.1 0.6 0.1 - 1.8 Goodwill impairment charge 1.2 - - - 1.2 Adjusted operating profit 30.5 19.0 28.2 8.0 85.7 Divested businesses - - (2.3) (0.2) (2.5) Corporate cost reallocation (0.2) (0.2) 0.4 - - Adjusted operating profit for continuing businesses 30.3 18.8 26.3 7.8 83.2 Restructuring charges for continuing businesses 0.5 2.1 5.1 - 7.7 Adjusted operating profit for continuing businesses before restructuring charges 30.8 20.9 31.4 7.8 90.9 The adjustment for corporate cost reallocation is a consequence of the adjustment for divested businesses and reallocates all corporate costs to the continuing businesses. Adjusted profit before tax 2007 2006 £m £m Profit before tax as reported under adopted IFRS 118.1 85.6 Amortisation of acquisition-related intangible assets 1.9 1.8 Goodwill reduction - 1.2 Profit on disposal of businesses (19.0) (9.5) Unrealised change in fair value of cross-currency interest (3.0) (2.8) rate swaps Adjusted profit before tax 98.0 76.3 Operating cash flow 2007 2006 £m £m Net cash from operating activities under adopted IFRS 91.2 80.5 Corporation tax paid 23.8 21.5 Purchase of property, plant & equipment (12.7) (10.5) Proceeds from sale of property, plant & equipment 1.4 - Operating cash flow for management purposes 103.7 91.5 Adjusted earnings per share 2007 2006 £m £m Profit after tax as reported under adopted IFRS 86.2 61.4 Adjusted for: Amortisation of acquisition-related intangible 1.9 1.8 assets Goodwill reduction - 1.2 Profit on disposal of businesses (19.0) (9.5) Unrealised change in fair value of cross-currency interest rate swaps (3.0) (2.8) Tax effect of the above 4.5 3.4 Other tax items not forming part of the underlying tax rate - (1.2) Adjusted earnings 70.6 54.3 Weighted average number of shares outstanding (millions) 121.6 124.3 Adjusted earnings per share (pence) 58.1 43.7 Adjusted diluted earnings per share 2007 2006 Adjusted earnings (as above) (£m) 70.6 54.3 Diluted weighted average number of shares outstanding (millions) 122.1 124.7 Adjusted diluted earnings per share (pence) 57.8 43.5 Analysis of net debt for management purposes 2007 2006 £m £m Bank overdrafts 4.0 4.0 Bank loans - secured 2.5 2.7 Unsecured loan notes 106.0 106.1 Cross-currency interest rate swaps - currency portion 16.2 9.8 Finance lease liabilities - 0.1 Total borrowings 128.7 122.7 Cash balances (51.4) (51.0) Net debt 77.3 71.7 Analysis of revenue by geographical destination 2007 2006 for continuing businesses £m £m UK 28.5 28.6 Continental Europe 254.6 244.5 North America 152.5 157.0 Japan 53.6 55.5 China 55.0 49.0 Rest of Asia Pacific 73.1 74.7 Rest of the world 42.5 33.3 Total continuing businesses 659.8 642.6 Divested businesses 8.6 41.9 Group total 668.4 684.5 Results of the group based upon the 2006 segmentation Process In-line Electronic Total Total Technology Instrumentation Controls 2007 2006 2007 2006 2007 2006 2007 2006 £m £m £m £m £m £m £m £m Sales 352.3 343.6 177.7 202.2 138.4 138.7 668.4 684.5 Divested businesses - (8.6) (38.0) (3.9) (8.6) (41.9) - - Sales for continuing 352.3 343.6 169.1 164.2 138.4 134.8 659.8 642.6 businesses Operating profit 52.0 42.6 29.7 22.9 21.2 17.2 102.9 82.7 Amortisation of intangibles 1.5 1.7 0.4 0.1 - - 1.9 1.8 Goodwill reduction - 1.2 - - - - - 1.2 Adjusted operating profit 53.5 45.5 30.1 23.0 21.2 17.2 104.8 85.7 Divested businesses - - (0.5) (2.3) - (0.2) (0.5) (2.5) Corporate cost reallocation* - (0.3) - 0.4 - (0.1) - - Adjusted operating profit for 53.5 45.2 29.6 21.1 21.2 16.9 104.3 83.2 continuing businesses Restructuring charges for 0.2 1.9 0.7 5.1 0.7 0.9 7.7 continuing businesses - Adjusted operating profit for 53.7 47.1 30.3 26.2 21.2 17.6 105.2 90.9 continuing businesses before restructuring charges Return on sales after 15.2% 13.2% 17.5% 12.9% 15.3% 12.5% 15.8% 12.9% restructuring Return on sales before 15.2% 13.7% 17.9% 16.0% 15.3% 13.1% 15.9% 14.1% restructuring * Reallocates corporate costs from divested businesses to continuing businesses. 3. SEGMENTAL INFORMATION The group's primary reporting format is business segments and its secondary format is geographical segments. The companies within each business segment are detailed in the Operating Review section of the preliminary statement. The business segments for which information has been included in these accounts are different from those disclosed in prior years. The new disclosures reflect the manner in which the business is currently managed by the Board of Directors. Prior year comparatives have been restated accordingly. a) Business segments Segment revenue Inter-segment External customer Segment result revenue revenue 2007 2006 2007 2006 2007 2006 2007 2006 Restated Restated Restated Restated £m £m £m £m £m £m £m £m Materials Analysis 214.1 206.0 (0.3) (0.3) 213.8 205.7 33.5 28.2 Test & Measurement 208.1 202.2 (0.6) (0.7) 207.5 201.5 26.0 18.4 In-line Instrumentation 209.3 235.2 (0.5) (0.7) 208.8 234.5 34.8 28.1 Industrial Controls 38.3 42.8 - - 38.3 42.8 8.6 8.0 Eliminate inter-segment (1.4) (1.7) 1.4 1.7 - - sales - - Total continuing operations 668.4 684.5 - - 668.4 684.5 102.9 82.7 Profit on disposal of 19.0 9.5 businesses Financial income 9.6 9.0 Finance costs (13.4) (15.6) Profit before tax 118.1 85.6 Tax (31.9) (24.2) Profit after tax 86.2 61.4 Inter-segment pricing is on an arm's length basis. Segments are presented on the basis of actual inter-segment charges made. Profit on disposal of business of £19.0m (2006: £9.5m) relates to the In-line Instrumentation segment (2006: Electronic Controls segment). Segment assets Segment liabilities 2007 2006 2007 2006 Restated Restated £m £m £m £m Materials Analysis 199.8 184.6 (67.8) (59.1) Test & Measurement 191.9 179.8 (53.6) (50.6) In-line Instrumentation 169.2 167.0 (46.1) (45.4) Industrial Controls 9.8 9.9 (4.1) (5.2) Total segment assets and liabilities 570.7 541.3 (171.6) (160.3) Cash and borrowings 51.4 51.0 (112.5) (112.9) Derivative financial instruments 0.1 1.3 (16.1) (12.8) Net pension liability - - (11.1) (18.8) Taxation (including amounts disclosed within 25.7 39.7 (33.8) (34.4) assets and liabilities held for sale) Consolidated total assets and liabilities 647.9 633.3 (345.1) (339.2) Additions to Depreciation and Impairment non-current assets amortisation charges 2007 2006 2007 2006 2007 2006 Restated Restated £m £m £m £m £m £m Materials Analysis 4.2 6.1 4.3 3.6 - - Test & Measurement 3.5 5.8 6.3 6.8 - - In-line Instrumentation 10.8 5.5 4.2 4.4 - - Industrial Controls 0.4 0.3 0.3 0.3 - - 18.9 17.7 15.1 15.1 - - b) Geographical segments The group's business operations are each located in several geographical locations and sell on to external customers in all parts of the world. The following is an analysis of revenue by geographical destination: Materials Test & In-line Industrial Total Total Analysis Measurement Instrumentation Controls 2007 2006 £m £m £m £m £m £m UK 9.4 8.6 10.2 1.5 29.7 36.3 Continental Europe 66.2 112.4 70.7 7.2 256.5 253.5 North America 50.0 23.5 58.9 24.2 156.6 176.4 Japan 18.9 16.5 17.9 0.4 53.7 55.8 China 18.7 14.4 21.2 1.1 55.4 50.1 Rest of Asia Pacific 33.9 19.0 17.3 3.4 73.6 76.9 Rest of the world 16.7 13.1 12.6 0.5 42.9 35.5 213.8 207.5 208.8 38.3 668.4 684.5 The following is an analysis of the carrying amount of segment assets, and additions to property, plant and equipment and intangible assets, analysed by the geographical area in which the assets are located. Carrying amount of Additions to segment assets non-current assets 2007 2006 2007 2006 £m £m £m £m UK 58.4 63.1 3.9 1.8 Continental Europe 385.6 355.6 5.5 5.9 North America 84.5 84.2 7.8 7.7 Japan 15.0 13.9 0.1 0.1 China 10.5 10.1 0.6 0.3 Rest of Asia Pacific 12.0 11.6 0.9 1.3 Rest of the world 4.7 2.8 0.1 0.6 570.7 541.3 18.9 17.7 4. FINANCE COSTS AND FINANCIAL INCOME 2007 2006 Financial income £m £m Bank interest receivable 1.8 2.0 Change in fair value of cross-currency interest rate swaps 3.0 2.8 Expected return on pension scheme assets 4.8 4.2 9.6 9.0 2007 2006 Finance costs £m £m Interest payable on bank loans and overdrafts 8.2 0.5 Interest payable on other loans 0.3 10.6 Total interest payable 8.5 11.1 Interest cost on pension scheme liabilities 4.9 4.5 13.4 15.6 Interest costs of £6.7m (2006: £9.1m) for the purposes of the calculation of interest cover comprise of bank interest receivable of £1.8m (2006: £2.0m) and interest payable on bank and other loans and overdrafts of £8.5m (2006: £11.1m). 5. TAXATION UK Overseas 2007 UK Overseas 2006 Total Total £m £m £m £m £m £m Current tax charge - 27.8 27.8 0.9 21.4 22.3 Adjustments in respect of (0.3) (3.6) (3.9) (0.1) (0.5) (0.6) current tax of prior years Deferred tax - origination and 2.9 5.1 8.0 (0.3) 2.8 2.5 reversal of temporary differences 2.6 29.3 31.9 0.5 23.7 24.2 The standard rate of corporation tax for the year, based on the weighted average of tax rates applied to the group's profits, is 32.3% (2006: 32.1%). The tax charge for the year is lower than the standard rate of corporation tax for the reasons set out in the following reconciliation: 2007 2006 £m £m Profit before taxation 118.1 85.6 Corporation tax at standard rate of 32.3% (2006: 32.1%) 38.2 27.5 Non-taxable income and gains (4.1) (1.7) Non-deductible expenditure 1.7 1.2 Movements on unrecognised deferred tax assets - (0.6) Other current year items (0.1) (0.1) Taxation on other dividend flows 0.1 - Change in tax rates 0.5 - Other adjustments to prior year current and deferred tax (4.4) (2.1) charges Total taxation 31.9 24.2 The aggregate current and deferred tax charge relating to items that are charged directly to equity is as follows: 2007 2006 £m £m 4.0 1.2 The following tax charges relate to items of income and expense that are excluded from the group's adjusted performance measures. Tax on items of income and expense that are excluded from the 2007 2006 group's adjusted profit before tax £m £m 0.9 0.8 Tax charge on unrealised change in fair value of cross-currency interest rate swaps Tax credit on amortisation of intangible assets and goodwill (0.5) (0.6) impairment charge Tax charge on disposal of subsidiary undertakings 4.1 3.2 Total tax charge 4.5 3.4 Other tax items not forming part of the underlying tax rate 2007 2006 £m £m Material transfers from unrecognised tax assets - (1.2) Total tax credit - (1.2) The effective adjusted tax rate for the period was 28.0% (2006: 28.8%) as set out in the reconciliation below: Reconciliation of total tax charge on adopted IFRS basis to adjusted tax 2007 2006 charge £m £m Total tax charge on adopted IFRS basis 31.9 24.2 Tax charge on items of income and expense that are excluded from the group's (4.5) (3.4) adjusted profit before tax Other tax items not forming part of the underlying tax rate - 1.2 Adjusted tax charge 27.4 22.0 Adjusted profit before tax 98.0 76.3 Adjusted effective tax rate 28.0% 28.8% 6. DIVIDENDS 2007 2006 Amounts recognised and paid as distributions to equity holders in the £m £m year Final dividend for the year ended 31 December 2006 of 12.5p 15.4 14.0 (2005: 11.2p) per share Interim dividend for the year ended 31 December 2007 of 5.75p 6.8 6.2 (2006: 5.0p) per share 22.2 20.2 Amounts arising in respect of the year 2007 2006 £m £m Interim dividend for the year ended 31 December 2007 of 6.8 6.2 5.75p (2006: 5.0p) per share Proposed final dividend for the year ended 31 December 2007 of 15.25p (2006: 12.5p) per share 17.5 15.6 24.3 21.8 The proposed final dividend is subject to approval by shareholders at the Annual General Meeting and has not been included as a liability in these financial statements. 7. EARNINGS PER SHARE Basic earnings per share amounts are calculated by dividing net profit for the year attributable to ordinary equity shareholders of the parent by the weighted average number of ordinary shares outstanding during the year. Diluted earnings per share amounts are calculated by dividing the net profit attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the year but adjusted for the effects of dilutive options. Basic earnings per share 2007 2006 Profit after tax (£m) 86.2 61.4 Weighted average number of shares outstanding (millions) 121.6 124.3 Basic earnings per share (pence) 70.9 49.4 Diluted earnings per share 2007 2006 Profit after tax per income statement (£m) 86.2 61.4 Basic weighted average number of shares outstanding (millions) 121.6 124.3 Weighted average number of dilutive 5p ordinary shares under option 1.0 1.6 (millions) Weighted average number of 5p ordinary shares that would have been (0.5) (1.2) issued at average market value from proceeds of dilutive share options (millions) Diluted weighted average number of shares outstanding (millions) 122.1 124.7 Diluted earnings per share (pence) 70.6 49.2 8. COMPANY INFORMATION The financial information set out above does not constitute the company's statutory accounts for the years ended 31 December 2007 or 2006 but is derived from those accounts. Statutory accounts for 2006 have been delivered to the Registrar of Companies. The auditors have reported on those accounts; their report was unqualified and did not contain statements under section 237(2) or (3) of the Companies Act 1985. The statutory accounts for 2007 will be delivered following the company's Annual General Meeting. 9. ANNUAL REPORT Copies of the annual report, which will be posted to shareholders on 20 March 2008, may be obtained from the registered office at Station Road, Egham, Surrey TW20 9NP. The report will also be available on the company's website at www.spectris.com. This information is provided by RNS The company news service from the London Stock Exchange

Companies

Spectris (SXS)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today