Interim Management Statement

RNS Number : 1714V

Spectris PLC

24 October 2014

 



Spectris: Interim Management Statement

24 October 2014 - Spectris plc (SXS: LSE), the productivity-enhancing instrumentation and controls company, today issues its Interim Management Statement covering the period from 1 July to 23 October 2014 ("the period").

TRADING UPDATE

Sales for the third quarter ending 30 September 2014 were flat on a constant currency organic ("like-for-like") basis. Acquisitions contributed 2% while foreign currency exchange movements had a negative effect of 7%, so that on a reported basis, sales decreased by 5% compared with the same period last year.

Regionally, like-for-like sales to North America grew by 7%, Asia Pacific decreased by 3% and Europe decreased by 6% as a result of increasing weakness in Eurozone economies, especially Germany.

Growth in the Test and Measurement, In-line Instrumentation and Industrial Controls segments was offset by a sales decline in the Materials Analysis segment. Sales to the automotive and energy and utilities markets showed good growth; however, sales to the pulp and paper industry were lower, particularly in Asia. Within the Materials Analysis segment, the metals, minerals, mining and academic research sectors remained weak, although we have recently started to see signs of improving demand from customers in these markets.

ACQUISITIONS

As previously announced at the half year, we completed two acquisitions in July within the Materials Analysis segment. Later in the period, we also acquired a distributor in South Korea for one of our businesses in the Materials Analysis segment and an optical sensors business as a bolt-on acquisition within our Test and Measurement segment.

FINANCIAL POSITION

Operating cash-flow conversion continues to be strong and Spectris maintains a healthy financial position. After taking acquisitions into account, net debt at 30 September 2014 was approximately £119.8 million, an increase of £15.7 million compared to the start of the year.

SUMMARY AND OUTLOOK

Commenting on the trading position, John O'Higgins, Chief Executive, said: "The weaker than expected trading patterns experienced in the second quarter have continued. Despite the contribution from acquisitions and new products, the macro-economic environment in some of the Group's main geographies has shown little improvement during the period.  Accordingly the Board now expects that EBITA performance for the full year will be modestly below the current consensus¹."

¹ Company-compiled consensus full year EBITA £200 million (range £188 - £211 million)

A conference call for analysts and investors will be held at 08.00 (UK time) today to discuss this statement. To access the call, please use the following numbers:

Toll Number	[phone]
Toll-Free Number	0808 237 0030
Participant PIN	85834312#
Replay Number	[phone]
Replay Toll Free	0808 237 0026
Replay Pin Code	650621#

- ENDS -

Contacts:

Spectris plc

John O'Higgins, Chief Executive	[phone]
Clive Watson, Group Finance Director	[phone]
Matt Jones, Head of Corporate Affairs	[phone]

FTI Consulting

Richard Mountain

[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, United Kingdom, the Company employs approximately 8,000 people, with offices in more than 30 countries.

 

END

 

 

IMSMJBFTMBMTBBI