TIDMSXS
RNS Number : 7735R
Spectris PLC
31 October 2023
Spectris - Q3 trading update
31 October 2023 - Spectris plc (SXS: LSE), the expert in
providing insight through precision measurement, provides a trading
update for the three-month period ended 30 September 2023 ('the
period').
Continued momentum with strong sales growth in Q3; full year
operating profit expected to be in the top half of guidance
range
-- Double-digit sales growth in Q3 supported by our strong order book:
o Q3 like-for-like (LFL) sales growth of 11% (growth of 5% on a
reported basis)
o Year-to-date LFL sales growth of 16% and book-to-bill of
0.97x
o Demand has now broadly normalised with our backlog and lead
times returning to more typical levels
-- Strong progress on margins, particularly in Spectris Dynamics
-- Balance sheet providing capital allocation optionality:
o Net cash of GBP164.1 million at period end
o Completion of four acquisitions (totalling GBP58.4 million)
since the half year, supporting growth
o On track to complete the final part of our GBP300 million buy
back by the end of the year
-- Guidance and outlook:
o Order book visibility provides confidence in the outlook
o For the financial year 2023, we now expect to deliver:
-- LFL sales growth of around 10%
-- Strong progress on margins, with adjusted operating profit in
the upper half of our guidance range of GBP250 million to GBP265
million
o Looking further ahead to 2024, we expect another year of
progress, including further margin expansion
Andrew Heath, Chief Executive, said:
"We continued to make excellent progress with another quarter of
double-digit sales growth underpinned by new product launches and
sustainability drivers and I want to thank all our people for their
hard work in delivering these results. I am delighted with the
continuing progress we make on margins reflecting not only our
sales growth but also our focus on delivering operational
efficiencies.
Our performance in the third quarter provides further evidence
of the improved quality and strength of the Group and represents
another step towards the delivery of our medium-term targets. Our
balance sheet provides us with flexibility for continued investment
in growth as evidenced by the acquisitions completed during the
period.
While remaining alive to the broader macro-economic environment,
the Group's resilience, demonstrated by our order momentum, leading
product portfolio and broad end market exposure, combined with a
strong self-help story, gives me confidence in delivering our
guidance for this year and another year of progress in 2024."
Sales by geography and division - LFL growth Q3 2023 vs Q3
2022
By division By region
-------------------- ----------- ----------------- ---------
Spectris Scientific 12% North America 11%
Spectris Dynamics 8% Europe 12%
Other 15% Asia 11%
Rest of the World 5%
Total sales 11% 11%
-------------------- ----------- ----------------- ---------
Group sales increased by 5% (GBP16.6 million) to GBP349.2
million (Q3 2022: GBP332.6 million). LFL sales increased 11% with
good growth across all regions, with the impact of disposals, net
of acquisitions, reducing sales by 1% and foreign currency exchange
reducing sales by 5%.
-- Spectris Scientific continued to perform strongly in the
quarter, with double-digit increase in LFL sales and growth across
all regions, continuing the momentum from the first half. Customer
order intake has now normalised across life
sciences/pharmaceuticals and semi-conductor end markets. On a
year-to-date basis, demand in metals, minerals & mining and
academia were ahead of the comparative period.
-- Spectris Dynamics also performed strongly with double-digit
LFL sales growth in North America and Europe, partially offset by
softer sales in Asia. Order intake in Q3 grew versus the
comparative period, with demand up across A&D, automotive and
academia, partially offset by softer demand in machine
manufacturing particularly in China, where we continue to see some
order intake normalisation.
Strong balance sheet providing investment for growth
-- The Group had net cash of GBP164.1 million at the end of the
period (GBP214.3 million at 30 June 2023), positioning us to
continue to deliver R&D investment at 8% of sales, with
capacity to compound growth through M&A aligned with the
Group's strategy
-- S ince our interim results, we have completed four acquisitions:
o In Spectris Scientific:
Ø A minority investment of GBP7.8 million ($10 million) in
LumaCyte Incorporated, a bioanalytic instrumentation company,
providing further exposure and deeper insights into the high growth
Cell & Gene Therapy and vaccine markets;
Ø The acquisition of EMS, a long-established partner and
exclusive distributor of PMS products in the UK and Ireland for a
headline value of GBP6.9 million (EUR8 million), which further
strengthens our regional services offering;
Ø The acquisition of the x-ray diffraction product line from
Freiberg Instruments for total consideration of up to GBP12.9
million (EUR15 million). The acquisition of crystal orientation
metrology tools provides complementary solutions to our existing
semiconductor portfolio allowing us to further respond to the
industry requirement to improve yields and performance; and
o In Spectris Dynamics:
Ø The acquisition of MicroStrain Sensing Systems business, a
leading developer of inertial and wireless sensing systems, for a
headline value of GBP30.8 million ($37.6 million)
-- During the period, we continued our GBP300 million share
buyback programme (GBP264 million completed as at 30 September
2023) which we expect to complete by the end of the year
Quarterly Group sales
2022 2023
Q1 Q2 Q3 Q4 Q1 Q2 Q3
GBP million 264.9 305.3 332.6 424.6 354.3 348.2 349.2
LFL growth 12% 9% 10% 21% 24% 15% 11%
----- ----- ----- ----- ----- ----- -----
Conference call
A conference call for analysts and investors will be hosted by
Andrew Heath, Chief Executive, and Derek Harding, Chief Financial
Officer, at 08.30 today to discuss this statement. To access the
call, please dial +44 (0) 20 4587 0498, toll free +44 (0) 800 358
1035 - Participant code: 746319. Or for replay, please dial +44 (0)
20 3936 3001 - Participant code: 706067.
Spectris will publish its full-year results for 2023 on 29
February 2024.
For and on behalf of Spectris plc
LEI Number: 213800Z4CO2CZO3M3T10
Contacts:
Spectris plc
Mathew Wootton
Investor Relations Director
+44 7500 078 880
Teneo
Martin Robinson/Giles Kernick
+44 20 7353 4200
About Spectris
Spectris combines precision with purpose, delivering progress
for a more sustainable world. We provide critical insights to our
customers through premium precision measurement solutions combined
with technical expertise and deep domain knowledge. Precision is at
the heart of what we do - our leading, high-tech instruments and
software equip our customers to solve some of their greatest
challenges to make the world cleaner, healthier and more
productive. We are focused on two key divisions - Spectris
Scientific and Spectris Dynamics, which are placed in
technology-driven end markets, with strong fundamentals and
attractive growth trajectories. We have leading market positions in
premium segments and employ 7,600 people located in more than 30
countries, all united behind our purpose to deliver value beyond
measure for all our stakeholders. 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.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTNKKBBCBDDQKN
(END) Dow Jones Newswires
October 31, 2023 03:00 ET (07:00 GMT)
Spectris (LSE:SXS)
Gráfica de Acción Histórica
De Abr 2024 a May 2024
Spectris (LSE:SXS)
Gráfica de Acción Histórica
De May 2023 a May 2024