Trading Update

RNS Number : 3742G

Spectris PLC

20 November 2015

 

Spectris plc

Trading Update

20 November 2015 - Spectris plc (SXS: LSE), the productivity-enhancing instrumentation and controls company, issues a trading update covering the period from 1 July to 31 October 2015 ("the period").

TRADING UPDATE

Group like-for-like¹ ('LFL') sales declined by 1% in the four months to 31 October 2015, with trading conditions worsening as the period progressed. Acquisitions contributed 2% points of sales growth, whilst foreign currency exchange movements adversely impacted growth by 2% points. As a result, reported sales declined by 1% in the period.

LFL sales grew by 2% in both Europe and Asia Pacific, whilst sales to North America declined by 3% and there was a significant decline in sales to the rest of the world, principally driven by weakness in Russia and Latin America. Materials Analysis and Test and Measurement both continued to deliver LFL sales growth, whilst sales declined in both In-line Instrumentation and, more markedly, in Industrial Controls.

We are making good progress with the restructuring initiatives announced at the time of the half-year results.

ACQUISITIONS

We have completed three bolt-on acquisitions since the half year, for a combined upfront purchase consideration of approximately £11 million.

In August, we purchased Label Vision Systems ("LVS"), a US-based company whose technology enables companies to comply with new US legislation on product identification marking and improve product traceability throughout the manufacturing supply chain. LVS will be integrated into Microscan within our Industrial Controls segment.

In October, we completed the acquisition of Spectraseis, a US-based leader in surface-based microseismic sensing technology. This technology is complementary to the products and solutions provided by ESG Solutions ("ESG") to the oil and gas and mining markets, and Spectraseis will be integrated into ESG Solutions within our Test and Measurement segment. It represents ESG's first acquisition, and is consistent with our stated objective when we acquired ESG: to accelerate its growth by strengthening its market position and expanding its geographical presence, both organically and via acquisitions.

In November, we acquired Sound Answers Inc., a US-based engineering services business that specialises in noise, vibration and harshness (NVH) design and simulation, primarily for automotive customers. Sound Answers will be integrated into Brüel & Kjær Sound & Vibration within our Test and Measurement segment.

In the last eighteen months the Group has invested around £135 million on eleven acquisitions, and our acquisition pipeline remains encouraging.

SUMMARY AND OUTLOOK

Commenting on the trading position, John O'Higgins, Chief Executive, said: "The period has been characterised by challenging trading conditions, particularly in our largest geographic region, North America. Within this environment we remain focused on executing specific restructuring programmes and operational initiatives to protect our profitability, whilst continuing to invest in our core R&D programmes. Accordingly, the Board currently anticipates that full year adjusted operating profit will be towards the lower end of the range of market expectations²."

A conference call for analysts and investors will be held at 08.00 today to discuss this statement. To access the call, please dial [phone], Toll Free 0808 237 0030 - Pin code: 34228740#. Or for replay, please dial [phone], Toll Free 0808 237 0026 - Pin code: 663124#.

Spectris will publish preliminary results for the year ending 31 December 2015 on 16 February 2016.

¹ Organic, constant currency sales

² Company-compiled consensus forecast for full year adjusted operating profit: £189.0 million (range £178.8 million - £196.0 million)

- 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 / Susanne Yule                                            [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 8,300 people located in more than 30 countries. For more information, visit www.spectris.com.

 

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