Spectris plc ("Spectris" or the "Company"), the productivity-enhancing instrumentation and controls company, today issues an update on trading for the six months ending 30 June 2010 ahead of the publication of the Company's interim results due to be released on 24 August 2010.
Further to our Interim Management Statement released in May, we are continuing to see an improvement in demand over the prior year, with signs of recovery throughout most regions and end markets. As a result, we expect sales for the first six months of 2010, on a constant currency organic ("like-for-like") basis, to be 8% higher than the comparable period last year. On a reported basis, revenue will increase by approximately 9%, including a contribution from acquisitions (+1%).
All four segments will show like-for-like revenue growth in the first half. We continue to see a faster recovery in the In-line Instrumentation and Industrial Controls segments than in Test & Measurement and Materials Analysis.
On a regional basis, Asia Pacific continues to lead the growth with sales expected to be up by 23% on a constant currency basis. In North America, sales will be up by 14%, while European sales will see a 3% decline.
Adjusted operating profit is expected to be in the region of £50 million (2009: £20 million), giving adjusted operating margins of approximately 12.3%. This compares with 5.4% for the same period last year.
Operating cash conversion was very good and our financial position remains strong, with net debt of approximately £93 million at the end of June.
The first six months of 2010 have been encouraging. Assuming current market conditions continue and notwithstanding the reversal of the 2009 temporary cost savings, we expect to continue to make good progress and deliver results for the full year ahead of the Board's earlier expectations.
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