Spectris revenue rises, reiterates FY guidance
Spectris posted a rise in revenue on Tuesday as it saw growth in all of its key regions, and reiterated its guidance for the full year.
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In the four months to the end of October, reported sales were up 9% compared to the corresponding period a year ago, with group like-for-like sales up 7%. Acquisitions, net of disposals, contributed 2% to sales growth, while foreign exchange had a marginally positive impact.
LFL sales grew in all key regions during the four-month period, with 11% growth in Asia thanks to strong demand in China. In North America, the performance improved markedly since the first half of the year, with LFL sales up 4%, while Europe saw sales rise 7%, in line with the first half. In Rest of the World, however, LFL sales slipped 1%.
Spectris highlighted 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.
The group said it still expects a net cost in 2017 of £14m for Phase 1 of its productivity improvement programme, Project Uplift, although both gross benefits and costs will be lower than previously anticipated.
Chief executive John O'Higgins 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."
At 0936 GMT, the shares were down 0.6% to 2,525p.