IFRS

Spectris PLC
15 June 2005


Date:            Embargoed until 07:00 15 June 2005

Contact:         Steve Hare, Finance Director, Spectris plc    Tel: [phone]

                 Richard Mountain, Financial Dynamics         Tel: [phone]



ADOPTION OF INTERNATIONAL REPORTING STANDARDS


Spectris plc, the precision instrumentation and controls company, today
announces the completion of preparations to adopt International Financial 
Reporting Standards (IFRS).


Spectris' transition date for IFRS reporting is 1 January 2004, and the first
full year reporting under IFRS will be 31 December 2005. Commenting on the
group's adoption of the new accounting rules, Steve Hare, Finance Director,
said:

'The financial information presented today shows the adoption of IFRS will have
a minimal impact on our accounts. The most significant changes are that Spectris
will no longer amortise goodwill, and from 1 January 2005 the adoption of IAS 39
may introduce greater volatility into our income statement. However, the
adoption of IFRS does not change our strategy, our risk management processes or
our cash flows.'

The primary changes to Spectris' reported 2004 financial information following
the adoption of IFRS are as a result of:


•    Changes in presentation and disclosure;

•    Ceasing to amortise goodwill. Capitalised goodwill will, in future, be 
     subject to an annual impairment review;

•    Recognising an expense for share-based payments;

•    Recognising certain intangible assets, which will be amortised;

•    Recognising assets and liabilities in respect of employee benefits;

•    Recognising deferred tax assets and liabilities on a different basis; and

•    Certain modest differences in the timing of revenue recognition.

The effect of the adoption of IFRS in respect of the group's 2004 financial
statements is set out in detail in a report that can be downloaded from the
company's website at www.spectris.com. In summary:


                                          UK GAAP           IFRS          Change
                                          £m                £m            £m
      Revenue                             614.2             614.1         (0.1)

      Operating profit                    52.2              51.2          (1.0)
      Adjusted operating profit*          65.2              64.6          (0.6)

      Profit before tax                   36.9              35.9          (1.0)
      Adjusted profit before tax*         51.1              50.5          (0.6)

      Earnings per share                  20.4p             19.5p         (0.9p)
      Adjusted earnings per share*        32.1p             31.6p         (0.5p)

                                          £m                £m            £m
      Net assets at 31 December 2004      196.0             234.3         38.3



*Adjusted operating profits and earnings per share are after adding back
intangible asset amortisation, asset impairment charges, gains or losses on
disposals of businesses and tangible fixed assets e.g. property, volatility
arising due to IAS 39 and the related tax effects of each.


•    Adjusted operating profits for the year to 31 December 2004 are reduced by 
     £0.6m from £65.2m to £64.6m due primarily to share-based payment expenses 
     of £0.4m; unadjusted operating profits are reduced by £1.0m from £52.2m to 
     £51.2m, which, in addition to the share-based payment expenses, is 
     primarily caused by changes to the accounting for goodwill and intangible 
     assets;

•    Adjusted and unadjusted profits before tax for the year to 31 December 2004 
     are reduced for the same reasons by £0.6m (from £51.1m to £50.5m) and £1.0m
     (from £36.9 to £35.9m) respectively;

•    Adjusted and unadjusted earnings per share are consequently reduced by
     0.5 pence per share and 0.9 pence per share respectively;

•    Net assets as at 31 December 2004 are increased by £38.3m from £196.0m to 
     £234.3m, primarily due to the recognition of a deferred tax asset on US
     goodwill of £11.0m, and changes to the timing of recognition of dividend
     payments totalling £12.4m;

•    Net assets at 1 January 2005 are reduced by £7.1m from £234.3m to £227.2m 
     following the adoption of IAS 39, comprising a liability of £9.5m relating 
     to swaps, offset by assets of £1.8m for average rate options, £0.8m for
     forward contracts, and the related deferred tax asset of £0.2m;

•    The adoption of IAS 39 will result in some additional earnings volatility 
     in 2005 and thereafter. Had the 2004 results been restated to reflect the 
     requirements of IAS 39 unadjusted profits before tax of £35.9m would have
     been reduced by £5.0 million, of which £4.9m related to cross-currency 
     interest rate swaps. There would have been no impact on adjusted profits 
     before tax.


To date, Spectris plc has prepared its accounts in compliance with UK Generally
Accepted Accounting Principles (UK GAAP). EU regulations require Spectris plc to
adopt IFRS in its financial statements from 2005. In conjunction with our
auditors, the group has reviewed those changes necessary to move from UK GAAP to
IFRS. Restatements of our 2004 financial statements are unaudited, but our
auditors have agreed the principles and methodologies that have now been adopted
by the group.


Disclaimer

Standards currently in issue and adopted by the EU are subject to interpretation
issued from time to time by the International Financial Reporting
Interpretations Committee (IFRIC). Further standards may be issued by the IASB
that will be adopted for financial years beginning on or after 1 January 2005.
Additionally, IFRS is currently being applied in the United Kingdom and in a
large number of countries simultaneously for the first time. Furthermore, due to
a number of new and revised Standards included within the body of Standards that
comprise IFRS, there is not yet significant established practice on which to
draw in forming decisions regarding the interpretation and application.
Accordingly, practice is continuing to evolve. At this preliminary stage,
therefore, the full financial effect of reporting under IFRS as it will be
applied and reported on in the Company's first IFRS financial statements for the
year ended 31 December 2005 may be subject to change.


Copies of this announcement are available from the company's registered office
at

Station Road, Egham, Surrey TW20 9NP, and on the company's website at
www.spectris.com.


                      This information is provided by RNS
            The company news service from the London Stock Exchange