Highlights
| £m | 2005 Half year |
2004 Half year* |
change |
|---|---|---|---|
| Sales | 307.2 | 283.6 | +8% |
| Adjusted operating profit* | 27.8 | 21.3 | +31% |
| Adjusted profit before tax* | 21.1 | 14.5 | +46% |
| Profit before tax | 16.5 | 14.1 | +17% |
| Adjusted earnings per share* | 12.7p | 9.2p | +38% |
| Basic earnings per share | 5.9p | 8.9p | -34% |
| Dividend | 4.6p | 4.25p | +8% |
* See explanatory notes.
"The first half of 2005 saw
a significant improvement
compared with the
corresponding weak
period in 2004. First half
sales growth in all major
regions, together with
current levels of demand,
gives confidence that the
company will show
encouraging progress
for the year."
John Poulter, Chairman
Explanatory notes for reading the interim announcement
- The results for the six months ended 30 June 2005 represent the group’s first interim financial statements prepared in accordance with its accounting policies under International Financial Reporting Standards (IFRS). The 2004 comparative results have been restated as a result.
- Spectris uses adjusted figures as key performance measures. Adjusted figures are stated before amortisation of intangible assets, goodwill charges, profits or losses on disposal of businesses, gains or losses on revaluation of financial assets, unrealised changes in the fair value of financial instruments, related tax effects and other tax items which do not form part of the underlying tax rate. The differences between the adjusted and unadjusted measures are reconciled in the Consolidated Income Statement and in Note 4.
- Basic earnings per share reduced from 8.9p to 5.9p. This decrease primarily reflects an unrealised loss of £4.5m on the revaluation of financial instruments including £1.8m attributable to average rate options and £2.7m attributable to the group’s cross-currency interest rate swaps, the latter reflecting a reduction in Euro bond yields in the first half of the year. The decrease is also driven by a tax charge of £2.8m on dividends received from EU-based subsidiaries on the basis of current UK tax law. However, hearings within the European Court of Justice might overturn this law, in which case no tax will be due.
- The narrative that follows is based on the adjusted measures of operating profit, profit before tax and earnings per share.
