Interim Management Statement

RNS Number : 1583M

Spectris PLC

19 May 2010

 

Date: 19 May 2010

SPECTRIS PLC

AGM AND INTERIM MANAGEMENT STATEMENT

 At the Annual General Meeting of Spectris plc ("Spectris" or "the group") being held today, the Chairman, John Hughes, will make the following Interim Management Statement covering the period from 1 January 2010 to date.

At the time of our full year results announcement in February, we noted that year-on-year trading had started to improve in the last quarter of 2009 and was continuing into 2010. Since that time we have seen a continuation of this pattern, with signs of recovery throughout most regions and end markets. On a like-for-like basis, sales for the four months ended 30 April 2010 were 6% higher than the comparable period last year.

On a reported basis, revenues increased by 4%, adversely impacted by currency (-3%) and including a contribution from acquisitions (+1%).

The strongest recovery is in the In-line Instrumentation and Industrial Controls segments which are benefiting from a return to more normal replacement and service expenditure. Growth in the Test & Measurement and Materials Analysis segments has been at a slower pace as customers' R&D-related spending recovers more gradually.

Regionally, the recovery in demand is unevenly spread. Sales in Asia Pacific grew by 23% on a constant currency basis, followed by North America, up by 11%, while European sales decreased by 5%.

The restructuring and post-acquisition integration actions which management took in 2009 are largely complete. The resulting margin benefits, offset by the reversal of temporary cost savings achieved in 2009, are expected to be in line with our guidance in the full year results announcement.

The group continues to maintain a strong financial position. Operating cash conversion was in excess of 100% for the first four months of 2010 and, at the end of April, net debt stood at £87 million, a reduction of £37 million compared to
31 December 2009. Before the half year, normal seasonal outflows will take place, including payments of dividend, interest and tax. There have been no significant events or transactions during the period which have had a material impact on the financial position of the group.

The group has made an encouraging start in 2010, although the rate and sustainability of recovery remains uncertain and uneven across regions and end markets. However, the diversity of markets served, as well as the group's pipeline of new products and its focus on enhancing customers' productivity, will continue to provide growth opportunities. Accordingly, the Board anticipates that Spectris will continue to make good progress in line with its expectations for the remainder of 2010.

Having served for two terms as a non-executive director, Tony Reading, who joined the Board in 2004, will retire at the conclusion of today's AGM. The Board would like to thank him for his contribution to the group during the past six years. John Warren will assume the role of senior independent director.

Spectris will issue a trading update on 16 July 2010, ahead of its interim results announcement on 24 August 2010.

ENDS

Enquiries:	John O'Higgins, Chief Executive, Spectris plc	Tel: [phone]
	Clive Watson, Group Finance Director, Spectris plc	Tel: [phone]
	Richard Mountain, Financial Dynamics	Tel: [phone]

About Spectris

Spectris plc is a leading supplier of productivity-enhancing instrumentation and controls. The company's products and technologies 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, the company employs approximately 5,700 people, with offices in 29 countries.

For more information, visit www.spectris.com

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.

 

END

 

 

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