Interim Management Statement

RNS Number : 9009R

Spectris PLC

11 November 2011

 



Date: 11 November 2011

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 10 November 2011.

TRADING UPDATE

Since we announced our interim results in August, trading has remained in line with our expectations. On a constant currency organic (like-for-like) basis, sales for the four months ended 31 October 2011 (the "period") were 12% higher than the comparable period last year. On a reported basis, sales increased by 21%, including a contribution from acquisitions of 7% and a positive currency effect of 2%.

All four segments saw like-for-like revenue growth in the period. The Materials Analysis, Test and Measurement and Industrial Controls segments continued to report double-digit sales growth, albeit at a slower pace than that reported in the first half of 2011. As expected, the In-line Instrumentation segment, which had a strong recovery in 2010, has now returned to more normalised growth levels.

Regionally, sales in Asia Pacific in the period grew by 20% on a like-for-like basis, with continued strength in China and a recovery in Japan. European sales increased by 10% and North America was up by 5%.

Like-for-like operating margins increased in line with our expectations.

ACQUISITIONS AND FINANCING UPDATE

During the period we completed the acquisition of IRM Group SA on 10 August, the Omega Engineering business on 30 September, and Sixnet LLC on 5 October.  In addition, on 20 October a small product line was acquired for the Materials Analysis segment. The aggregate net amount paid for these acquisitions was approximately £360 million. Our integration actions with respect to each of the acquisitions are proceeding according to plan.

Including the cost of these acquisitions, net debt at 31 October 2011 was £373 million. The company continues to maintain a healthy financial position, with operating cash conversion remaining strong and undrawn available credit facilities of approximately £120 million as at 31 October 2011. 

OUTLOOK

Growth rates have, as expected, reverted to more normal levels following the strong recovery in the second half of 2010. Whilst we are mindful of the tougher macro-economic outlook, the Board remains confident that Spectris will make good progress for the full year in line with its expectations.

Spectris will issue a trading update on 13 January 2012, ahead of the publication of the company's full year results due to be released on 17 February 2012.

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 dial [phone].

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 over 7,000 people, with offices in more than 30 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

FTI Consulting

Richard Mountain                                            020 7269 7186

 

END

 

 

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