Spectris PLC TRADING UPDATE (2651P)
25 May 2018 - 4:00PM
UK Regulatory
TIDMSXS
RNS Number : 2651P
Spectris PLC
25 May 2018
SPECTRIS PLC
TRADING UPDATE
25 May 2018 - Spectris plc (SXS: LSE), the
productivity-enhancing instrumentation and controls company, issues
a trading update covering the four months to 30 April 2018 ('the
period').
TRADING UPDATE
Group like-for-like(1) ('LFL') sales increased by 6%, whilst
growth from acquisitions, net of disposals, contributed a further
1%. Foreign currency exchange movements reduced sales by 5%,
resulting in a 2% increase in reported sales in the period.
LFL sales increased in North America, Europe and Asia, with
notably strong growth in China and in the UK, led by strong demand
for Millbrook's test services. All segments delivered LFL sales
growth in the period, except In-line Instrumentation which declined
against a strong comparator last year. From an end market
perspective, the growth was led by sales to the pharmaceutical and
automotive industries.
The Group continues to be highly cash generative and maintains a
strong financial position. Net debt at the end of April was GBP217
million, an increase of GBP167 million in the period, primarily
reflecting the acquisition of Concept Life Sciences in January, the
Group's capital expenditure programme and ongoing spend on the
GBP100 million share buyback programme. As of 24 May, the Group has
bought back 661,807 shares for a total cost of GBP17.9 million.
The disposal of EMS Brüel & Kjær ('EMS B&K'), the
environmental monitoring business, into a joint venture with
Macquarie Capital is expected to complete at the end of May for a
total cash consideration of around GBP43 million to the Group. Post
completion, the Group's share of post-tax income will be recorded
as a single-line item in the income statement. In 2017, EMS B&K
reported sales of GBP25 million and adjusted operating profit of
GBP6.3 million.
STRATEGY UPDATE
We continue to focus on transitioning our customer offering
towards the provision of solutions in order to provide a fully
integrated offering and differentiated value to our customers. The
acquisition of Concept Life Sciences in the period was a key step
forward in this strategy, adding services to our Materials Analysis
segment where it has strong synergies with Malvern Panalytical. In
automotive, the acquisition of Revolutionary Engineering in the USA
complements the existing test capabilities of Millbrook as well as
extending its reach into new geographies and its capabilities in
automotive testing systems.
We also announced in April that Brüel & Kjær Sound &
Vibration ('BKSV') and HBM, the two largest operating companies
within our Test and Measurement segment, will be merging their
activities from 1 January 2019, with some one-off merger-related
costs being incurred in 2018. This will create a new business, HBK
(Hottinger, Brüel & Kjær), which leverages the strengths and
complementary expertise of BKSV and HBM across the measurement
chain to enhance our customer proposition.
The Project Uplift initiatives are progressing as planned and
work continues on the detailed validation and design phase for the
shared service centre programme for Phase 2, with further detail to
be provided in the second half of the year.
SUMMARY AND OUTLOOK
Commenting on trading, John O'Higgins, Chief Executive, said:
"Performance in the year to date shows a continuation of the
strength in our end markets experienced in 2017, partly offset by
adverse foreign currency exchange impact. Performance remains
consistent with our expectations for the full year, although noting
that visibility on our order book remains limited. We are pleased
with the strategic developments we continue to make which further
expand our services capabilities and foster increased collaboration
between our operating companies as we continue to focus on the
provision of complete solutions for our customers."
CONFERENCE CALL
A conference call for analysts and investors will be hosted by
John O'Higgins, Chief Executive, and
Clive Watson, Group Finance Director, at 08.00 today to discuss
this statement.
To access the call, please dial +44 (0) 333 300 0804, toll free
0800 358 9473 - Pin code: 64663274#.
Or for replay, please dial +44 (0) 333 300 0819, toll free 0800
358 2049 - Pin code: 301231836#.
Spectris will publish its half-year results for the six months
ending 30 June 2018 on 24 July 2018.
(1) At constant exchange rates and presenting the impact of
acquisitions and disposals on a comparable basis
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 485325
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, technologies
and services 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
9,800 people located in more than 30 countries. For more
information, visit www.spectris.com.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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