Q3 trading update
19 October 2022 - Spectris plc (SXS: LSE), the expert in providing insight through precision measurement, provides a trading update for the three-month period to 30 September 2022 ('the period').
Continued strong sales growth - full-year guidance maintained
· Continuing strong demand, maintaining positive book-to-bill ratio
· Strong like-for-like ('LFL') [1] sales growth continues - up 10% both in the period and year to date
· Full year guidance of high single digit LFL sales growth re-affirmed
· Outlook for full year adjusted operating profit remains in line with current market expectations
· Strong balance sheet, with net cash of £222.2 million
· Acquisition of Dytran Instruments successfully completed
Andrew Heath, Chief Executive, said:
"We continue to see strong demand for our products and services, underpinning our expectation for high single digit organic sales growth for the full year. Orders remain ahead of revenue, even when compared to our strong performance in the third quarter last year, supported by our continued focus on R&D investment and new product introductions.
Our strong balance sheet provides the capacity to invest in growth, with proceeds from the divestment of Omega, received in July, returning the Group to a net cash position.
I am very pleased with the progress we continue to make. As we will outline at our Capital Markets Day later today, we have significantly improved the quality of our business, giving me the confidence that we are now more capable of compounding growth in the future and continuing to expand operating margins."
Sales by geography and business - LFL growth
|
Q1 |
Q2 |
Q3 |
9M |
|
Q1 |
Q2 |
Q3 |
9M |
North America |
10% |
21% |
6% |
12% |
Malvern Panalytical |
14% |
15% |
19% |
16% |
Europe |
12% |
2% |
7% |
7% |
HBK |
8% |
6% |
2% |
5% |
Asia |
15% |
9% |
16% |
13% |
Industrial Solutions |
15% |
8% |
11% |
11% |
Rest of the World |
6% |
5% |
11% |
8% |
|
|
|
|
|
Total sales |
12% |
9% |
10% |
10% |
|
12% |
9% |
10% |
10% |
Total orders |
31% |
11% |
0.5% |
13% |
|
31% |
11% |
0.5% |
13% |
Strong balance sheet with net cash position
Growing order book and strong customer demand
For and on behalf of Spectris plc
LEI Number: 213800Z4CO2CZO3M3T10
1. Consensus estimates for FY 2022 adjusted operating profit range from £206 million to £225 million as at 18 October. See our website for further details - Analyst coverage & consensus - Spectris
We are assuming an average $ rate of 1.22 and an average € rate of 1.17 for the full year.
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 7,350 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