12 November 2010
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 11 November 2010.
Since we announced our interim results in August, the rate of revenue growth has increased. On a reported basis, revenues for the four months ended 31 October 2010 increased by 21%, including a contribution from acquisitions of 2% and beneficial effects from currency of 3%. On a like-for-like basis, therefore, revenues were 16% higher than the comparable period last year.
We are now seeing higher sales in all business segments and all major regions, on a constant currency basis, compared with the same four-month period last year. There was a strong recovery in the Test and Measurement segment, where sales increased by 20% compared with the relatively weak prior year period. Regionally, group sales in North America were up by 32%, partly as a result of restocking and several project wins in the Test and Measurement segment. Asia Pacific continued to see strong growth, with sales up by 21%, whilst European sales have recovered and were up by 7% compared with the same period last year.
The company continues to maintain a good financial position, with operating cash conversion remaining strong. On 6 July 2010, we acquired Zhuhai Omec Instruments Co Ltd, a privately-owned Chinese company specialising in particle characterisation. On 1 October 2010, we completed the acquisition of N-TRON Corporation, a leading manufacturer of rugged industrial networking components, and on the same date we also acquired a distributor in Japan for the Materials Analysis segment. The total cost of these bolt-on acquisitions was £42 million. Including the cost of these acquisitions, net debt at 31 October 2010 was £105 million.
As previously noted, on 20 October 2010, Russell King joined the Board as a non-executive director. Russell was previously Chief Strategy Officer of Anglo American PLC and is a non-executive director of Aggreko plc.
On the basis that current trading levels continue, the Board now anticipates that Spectris will report adjusted pre-tax profits for the full year moderately above the high end of analysts' current forecasts1. The temporary cost savings made in 2009 have been progressively reversed in a measured way throughout 2010, and we expect a return to more normal sales growth following this year's recovery.
Spectris will issue a trading update in January 2011 ahead of the announcement of its financial results for the year ending 31 December 2010 on 25 February 2011.
1. Source: Reuters, adjusted pre-tax profit £115.2m
