Spectris supplies precision instrumentation and controls to enhance productivity by improving processes and products for end-user customers. Our products and applications help customers to improve product quality and performance, increase productivity and yield and reduce downtime and waste. Spectris products are generally small-ticket items, typically £10-20k, but bring real benefits, with rapid payback. Our instrumentation and electronic control businesses are all leaders in their niche markets and serve most industries around the world.

When was Spectris founded?

Spectris was founded in 1915 as The Fairey Aviation Company Limited. The company changed its name to Spectris plc in May 2001.

When did Spectris go public?

The company was listed on the stock exchange in 1988 as Fairey Group plc.

When did the company change its name?

Fairey Group changed its name to Spectris following approval by shareholders at the AGM in May 2001.

Why did the company change its name?

Fairey Group acquired the four instrumentation and controls businesses of the German company Spectris AG in June 2000. The reshaping of the group into a specialist technology-based instrumentation and electronic controls company, which has 90% of its business outside the UK, made it an appropriate time to adopt a name which more closely reflected the company’s focus. Fairey Group subsequently changed its name to Spectris as this name already had recognition and provided the opportunity to adopt a name which, along with trademarks and website domains, the company already owned.

What is the company’s financial position?

At the end of 2008, the last full year for which accounts are available, sales from continuing businesses were £787.1m (2007: £659.8m), with adjusted operating profit from continuing businesses of £118.3m (2007: £104.3m). Adjusted earnings per share were 72.8p (58.1p).

What is the company’s dividend policy?

Spectris’ dividend policy is progressive with dividend increases being based upon affordability and sustainability. Other factors taken into consideration when determining the dividend are the pay-out ratio and the yield. The proposed full year dividend for 2008 is 23.4p (2007: 21.0p)

What is the company’s net debt position?

As at the end of December 2008, the company’s net debt amounted to £162.1m and interest was covered by adjusted operating profit 14.4 times, providing significant headroom over and above banking covenants which require a minimum of 3.75 times cover.

How strong is cash generation?

Strong cash generation is a key company objective, with a target of delivering high cash conversion of operating profit in each financial year. Cash conversion is defined as operating cash flow as a percentage of adjusted operating profit. In 2008, cash conversion was 86% (2007: 99%). The lower cash conversion was a result of a combination of capital expenditure (£21.9m), net of disposals (£0.9m) being £7.5m higher than depreciation, and a build in working capital towards the second half of the year.

What is the company’s commitment to research and development?

Spectris invests significantly in the development of new products and technologies, with an annual spend of between 6 and 7% of sales on the development of new products and technologies. In 2008 expenditure on R&D increased by over £12m to £57m, or 7.2% of sales. Approximately 30% of sales are from products which are less than 3 years old. Many of our core technologies are protected by patents and process know-how.

Is the business capital intensive?

The nature of the business is not capital intensive. Capital expenditure during the year equated to 2.7% of sales (2007: 1.9%) and, at £21.9 million (2007: £12.7 million), was 162% of depreciation (2007: £97%). The majority of manufacturing is outsourced and premises are mainly leased. Gearing, expressed as year end net debt as a percentage of shareholders’ funds (adjusted to add back goodwill previously written off to reserves), was 21% in 2008 (2007: 12%).

Who are the main competitors to Spectris?

Owing to the company’s diversity, it is difficult to identify exact comparable trading companies, however, broker research reports have identified a number of peer companies in the US against which to compare valuations. These are: Dionex, Roper Industries, Danaher, Perkin Elmer, Mettler Toledo, Thermo Electron and Varian. Whilst a number of these companies are significantly larger than Spectris and only part of their business is in instrumentation, there is significant overlap.

Where does Spectris stock trade?

Spectris is listed on the London Stock Exchange in the Electronics sector under the ticker symbol SXS.

Can I buy Spectris shares in Europe or the USA?

Spectris shares cannot be purchased over the counter outside the UK, however they can be bought and sold via a registered intermediary.

I have a share certificate in the name of Fairey Group. How do I obtain a new certificate for Spectris?

Share certificates in the name of Fairey Group plc remain valid. However, if you would like a replacement certificate bearing the name of Spectris plc, please write to our registrars stating this request and enclosing your existing certificate. Our registrar’s details are as follows:- Equiniti Limited, Aspect House, Spencer Road, Lancing, West Sussex, BN99 6DA

How do I change my address on my share certificate?

To change any details on your share certificate, contact the registrars:- Equiniti Limited, Aspect House, Spencer Road, Lancing, West Sussex, BN99 6DA. A range of shareholder services are also provided on-line at www.shareview.co.uk.

How do I contact Spectris?

The company’s head office is at Station Road, Egham, Surrey, TW20 9NP, UK and the main telephone number is +44 (0)1784 470470. The e-mail address is headoffice@spectris.com