31 Oct 2008
Spectris plc, the productivity-enhancing instrumentation and controls company, today issues its Interim Management Statement for the period from 1 July to 30 October 2008, in accordance with the requirements of the UK Listing Authority's Disclosure and Transparency Rules.
Based on current trading, the company anticipates that results will be in line with expectations for 2008. Organic sales for the period at constant currency have continued to grow, albeit at a rate slightly below that seen in the first half of the year. Total group sales were boosted by positive currency effects of around 12% in the period and by a contribution from acquisitions, including Controle Analytique, Viscotek, nCode and the Siemens Machine Vision Business. Organic order intake for the period has slowed and was broadly flat on a constant currency basis. Total group orders increased compared with the prior year period as a result of the contribution from acquisitions and the positive currency effect.
On 1 October, Spectris announced that it had signed an agreement to acquire the LDS Test & Measurement business from SPX Corporation. The purchase consideration will be met from existing cash and bank facilities. The transaction is expected to be completed by the end of the year, subject to certain closing conditions.
The underlying effective tax rate is expected to decline from 28% to 26%, with a further one-off benefit of two percentage points this year. The group's financial position remains strong, with net debt less than EBITDA, which would increase to approximately 1.25 times EBITDA on completion of the LDS Test & Measurement acquisition.
As a result of management actions taken since 2005, operational gearing has been reduced; we continue to monitor market developments closely and are ready to take further measures in the event of any prolonged deterioration in our markets. The diversity of the markets Spectris serves and the increased expenditure on research and development will provide both resilience and growth opportunities.
Spectris will issue a trading update on 15 January 2009 ahead of its announcement of preliminary results for the year ending 31 December 2008 on 24 February 2009.
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