TIDMSXS
RNS Number : 0354X
Spectris PLC
21 November 2017
Spectris plc
Trading Update
21 November 2017 - Spectris plc (SXS: LSE), the
productivity-enhancing instrumentation and controls company, issues
a trading update covering the period from 1 July to 31 October 2017
('the period').
TRADING UPDATE
Reported sales for the four months to end October increased by
9% when compared to the corresponding period in the previous year.
Group like-for-like(1) ('LFL') sales increased 7%, whilst
acquisitions, net of disposals, contributed 2% to sales growth and
foreign currency had a marginally positive impact. For the
ten-month period 1 January to 31 October, LFL sales rose 6%.
LFL sales grew in all key regions during the four-month period
with particularly good growth in Asia, led by strong demand in
China. The performance in North America improved markedly since the
first half of the year, while Europe continued to perform in line
with the first half. LFL sales declined marginally in the Rest of
the World.
LFL sales increased across all four of the Group's business
segments. In regard to end markets, there was notable LFL sales
growth in automotive, electronics, semiconductors and telecoms and
metals, minerals and mining, while academic research continued to
see a LFL sales decline in the period.
LFL sales LFL sales
change change
Sales by geography 4 mths Jul-Oct Sales by segment 4 mths Jul-Oct
-------------------- ---------------- ------------------------ ----------------
Materials
North America 4% Analysis 6%
-------------------- ---------------- ------------------------ ----------------
Europe 7% Test and Measurement 7%
-------------------- ---------------- ------------------------ ----------------
Asia 11% In-line Instrumentation 7%
-------------------- ---------------- ------------------------ ----------------
Rest of the Industrial
World -1% Controls 6%
-------------------- ---------------- ------------------------ ----------------
STRATEGIC UPDATE
During the period, we completed the acquisition of
privately-held US company, The Omnicon Group, Inc. ('Omnicon') for
an initial consideration of $29 million, plus a performance-related
deferred consideration of up to $7 million. Omnicon provides a
range of services to help its customers analyse and improve product
reliability and safety and is being integrated alongside our
Prenscia software business within the Test and Measurement segment.
Omnicon complements the existing capability of our reliability and
durability software and services portfolio and provides strong
geographic growth opportunities across the joint customer base.
In October, the divestment of Microscan was completed with net
cash proceeds received of
GBP113 million, before tax of approximately GBP20 million which
is due to be paid in December 2017.
As previously stated, the sale of Microscan lowers 2017 adjusted
earnings per share by approximately 2 pence.
BALANCE SHEET
Following the sale of Microscan, net debt was GBP26.6 million at
31 October, before the outflow of the Group's GBP23 million
dividend payment in November. The Group continues to be highly cash
generative and maintains a strong financial position.
PROJECT UPLIFT
The Project Uplift initiatives continue and the Group still
expects a net cost in 2017 of GBP14 million for Phase 1, although
both gross benefits and costs will be lower than previously
anticipated. In addition, there is GBP1 million spend on the Phase
2 shared service centre project, as previously guided. To focus on
delivery of the Phase 1 initiatives, we have decided to re-phase
the detailed design and implementation planning stage of the shared
service centre project. As a result, further details of the costs
and benefits of Phase 2 will be provided later in 2018.
SUMMARY AND OUTLOOK
Commenting on trading, John O'Higgins, Chief Executive, said:
"Trading conditions in the period have been positive and we are
encouraged by the improving backdrop in North America. As
highlighted at the first-half results, we have continued to make
targeted investments to support our growth strategy, which have
increased our overhead costs this year as anticipated. Our outlook
for the
full year remains unchanged."
CONFERENCE CALL
A conference call for analysts and investors will be hosted by
John O'Higgins and Clive Watson,
Group Finance Director, at 08.00 today to discuss this
statement.
To access the call, please dial +44 (0) 33 3300 0804, toll free
0800 358 9473 - Pin code: 48741425#.
Or for replay, please dial +44 (0) 33 3300 0819, toll free 0800
358 2049 - Pin code: 301209999#.
Spectris will publish its preliminary results for the year
ending 31 December 2017 on 19 February 2018.
(1) At constant exchange rates and excluding acquisitions
- ENDS -
Contacts:
Spectris plc
John O'Higgins, Chief
Executive +44 1784 470470
Clive Watson, Group Finance
Director +44 1784 470470
Siobhán Andrews,
Head of Corporate Affairs +44 1784 470470
FTI Consulting
Richard Mountain / Susanne
Yule +44 203 727 1374
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 9,000
people located in more than 30 countries. For more information,
visit www.spectris.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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