Q1 trading update
28 April 2022 - Spectris plc (SXS: LSE), the expert in providing insight through precision measurement, provides a trading update for the three-month period to 31 March 2022 ('the period').
Strong start to 2022 - trading and order book provides momentum for full-year
· Strong organic sales growth continues - up 12% in the period
· Order intake strengthens further - up 29% in the period; supporting full-year outlook
· Strong balance sheet, with net cash of £133.1 million
· Divestment of Omega at highly attractive valuation
· First tranche of £300 million share buyback programme starts today
Andrew Heath, Chief Executive, said:
"We have started the year strongly, building on the momentum of 2021 with continued strategic execution. Strong organic growth is supported by new products driving market share gains as we take action to mitigate inflation and supply chain challenges. Our strong order book provides confidence in continued sales momentum, supporting our outlook and positive prospects for 2022. Our focus on R&D and sustainability underpins continued future growth.
Following the divestment of Omega, Spectris is now focused on premium precision measurement businesses with highly attractive financial profiles and growth prospects. We are confident in our ability to drive continued organic growth while further expanding operating margins and return on capital employed, with our strong balance sheet providing capacity to compound growth through M&A aligned to our strategy and purpose."
Sales by geography and business - like-for like ('LFL')[1] growth vs Q1 2021
|
Q1 |
|
Q1 |
North America |
8% |
Malvern Panalytical |
14% |
Europe |
12% |
HBK |
8% |
Asia |
15% |
Omega |
9% |
Rest of the World |
7% |
Industrial Solutions |
15% |
Total sales |
12% |
|
12% |
Total orders |
29% |
|
29% |
Strong balance sheet supports share buyback programme
Disciplined focus on value-enhancing M&A with active pipeline
Continued progress with ambitious sustainability strategy
· Alignment to key sustainability trends providing opportunities for future growth in our target end markets.
Guidance - positive outlook for 2022 confirmed
Conference call
A conference call for analysts and investors will be hosted by Andrew Heath, Chief Executive, and Derek Harding, Chief Financial Officer, at 08.30 today to discuss this statement.
To access the call, please dial +44 (0) 20 3936 2999, toll free 0800 640 6441 - Participant code: 959695. Or for replay, please dial +44 (0) 20 3936 3001 - Participant code: 019416.
Spectris will publish its half-year results for 2022 on 1 August 2022.
For and on behalf of Spectris plc
LEI Number: 213800Z4CO2CZO3M3T10
Siobhán Andrews
Head of Corporate Affairs
+44
20 4551 4549
/+44 7920 230093
Martin Robinson/Giles Kernick
+44 20 7353 4200
Spectris' global group of businesses are focused on delivering value beyond measure for all our stakeholders. We target global, attractive and sustainable markets, where growth and high returns are supported by long-term drivers. Precision is at the heart of what we do. We provide customers with expert insight through our advanced instruments and test equipment, augmented by the power of our software and services. This equips customers with the ability to reduce time to market, improve processes, quality and yield. In this way, Spectris know-how creates value for our wider society, as our customers design, develop, test and manufacture their products to make the world a cleaner, healthier and more productive place. Headquartered in London, United Kingdom, the Company employs approximately 7,600 people located in more than 30 countries. For more information, visit www.spectris.com .
[1]On a like-for-like ('LFL') basis. Like-for like sales are at constant exchange rates and exclude the impact of acquisitions and disposals during the year