Interim Management Statement

RNS Number : 0607W

Spectris PLC

12 November 2010

 



12 November 2010

SPECTRIS PLC: INTERIM MANAGEMENT STATEMENT

Spectris plc ("Spectris" or the "Company"), the productivity-enhancing instrumentation and controls company, today issues its Interim Management Statement for the period from 1 July to 11 November 2010.

Since we announced our interim results in August, the rate of revenue growth has increased. On a reported basis, revenues for the four months ended 31 October 2010 increased by 21%, including a contribution from acquisitions of 2% and beneficial effects from currency of 3%. On a like-for-like basis, therefore, revenues were 16% higher than the comparable period last year.

We are now seeing higher sales in all business segments and all major regions, on a constant currency basis, compared with the same four-month period last year. There was a strong recovery in the Test and Measurement segment, where sales increased by 20% compared with the relatively weak prior year period. Regionally, group sales in North America were up by 32%, partly as a result of restocking and several project wins in the Test and Measurement segment. Asia Pacific continued to see strong growth, with sales up by 21%, whilst European sales have recovered and were up by 7% compared with the same period last year.

The company continues to maintain a good financial position, with operating cash conversion remaining strong. On 6 July 2010, we acquired Zhuhai Omec Instruments Co Ltd, a privately-owned Chinese company specialising in particle characterisation. On 1 October 2010, we completed the acquisition of N-TRON Corporation, a leading manufacturer of rugged industrial networking components, and on the same date we also acquired a distributor in Japan for the Materials Analysis segment. The total cost of these bolt-on acquisitions was £42 million. Including the cost of these acquisitions, net debt at 31 October 2010 was £105 million.

As previously noted, on 20 October 2010, Russell King joined the Board as a non-executive director. Russell was previously Chief Strategy Officer of Anglo American PLC and is a non-executive director of Aggreko plc.

On the basis that current trading levels continue, the Board now anticipates that Spectris will report adjusted pre-tax profits for the full year moderately above the high end of analysts' current forecasts¹.  The temporary cost savings made in 2009 have been progressively reversed in a measured way throughout 2010, and we expect a return to more normal sales growth following this year's recovery. 

Spectris will issue a trading update in January 2011 ahead of the announcement of its financial results for the year ending 31 December 2010 on 25 February 2011.

1.     Source: Reuters, adjusted pre-tax profit £115.2m

ENDS

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 6,000 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

Contacts:

Spectris plc

John O'Higgins, Chief Executive                       01784 470470

Clive Watson, Group Finance Director             01784 470470

FD

Richard Mountain                                             020 7269 7186

 

END

 

 

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