31 July 2023 – Spectris plc (SXS: LSE), the expert in providing insight through precision measurement, announces half year results for the six months ended 30 June 2023.
Strong first half performance and upgrade to full year guidance
- Strong financial performance driven by continued execution of our strategy
o Sales up 23% (LFL1: 19%) from volume growth, market share gains and pricing
o Adjusted operating margin increased 180bps to 14.5% (2022: 12.7%)
o Record adjusted operating profit for the half year up 41% to £102.1 million (2022: £72.3 million)
o Adjusted earnings per share increased by 55% to 77.2p (2022: 49.8p)
o Strong order book with book to bill of c.1x with order intake normalising as anticipated
o Strong cash performance with adjusted cash conversion of 117% (2022: 39%)
o Dividend per share increase of 5%
- Great businesses delivering market share gains in structural growth markets
o Spectris Scientific: sales up 21% (LFL: 22%); adj. operating margin 17.5% (2022: 16.2%)
o Spectris Dynamics: sales up 23% (LFL: 13%); adj. operating margin 13.5% (2022: 12.7%)
o Other: sales up 33% (LFL: 27%); adj. operating margin 19.6% (2022: 11.0%)
- Investing in organic growth and targeted M&A supported by a strong balance sheet
o New product launches in all businesses underpinned by investment in R&D
o In Spectris Dynamics, agreement to acquire MicroStrain Sensing Systems Business
o Strong balance sheet with net cash of £214.3 million (2022: net debt of £98.3 million) and active M&A pipeline
o Continuation of share buyback with £83 million of £300 million programme remaining at 30 June 2023
o Return on Gross Capital Employed (‘ROGCE’) increased to 16.7% (2022: 13.8%)
- Upgrade to guidance for the full year
o As a result of our strong first half performance, we now expect organic sales growth for the full year to be ahead of our previous guidance of 6-7%
o We continue to expect strong progress on margins and expect full year adjusted operating profit to be in the range of £250 million to £265 million, representing strong double-digit year on year growth
Commenting on the results, Andrew Heath, Chief Executive, said:
“We have good momentum in the business and I am delighted to see the progress we are making with our Strategy for Sustainable growth. The strong financial performance in the first half reflects continued strategic execution and the brilliant contribution of my colleagues across the Group.
In Spectris Dynamics and Spectris Scientific, we have two great premium precision measurement businesses on attractive growth trajectories, more aligned than ever to markets with a strong sustainability focus. Demand for our solutions is being amplified by new products and services addressing these trends. Having repositioned Spectris over the past three years, we are now a higher quality, more customer-focused and resilient business.
While we remain vigilant and alert to the broader macro environment, the strong first half performance and strength of our order book means we are upgrading our guidance for the full year. We continue to drive operational excellence to reduce emissions, improve productivity and efficiency in-line with our ambition to be a leading sustainable, compound-growth business.”
Andrew Heath, Chief Executive Officer
Derek Harding, Chief Financial Officer
Mathew Wootton, Director of Investor Relations
Martin Robinson / Giles Kernick
+44 20 7353 4200
A webcast of the presentation will begin at 08:30hrs BST, followed by a conference call for analysts and investors hosted by Andrew Heath, Chief Executive, and Derek Harding, Chief Financial Officer to discuss this statement.
Please register via this link https://www.investis-live.com/spectris/649ad940383e901300144a3c/hdyr to join the presentation and use the following dial-in details to access the Q&A conference call: +44 20 4587 0498 – Pin code: 641903. For replay, please dial +44 (0) 20 3936 3001 – Pin code: 342648. Copies of this press release are available to the public from the registered office at Melbourne House, 44-46 Aldwych, London, WC2B 4LL and on the Company’s website at www.spectris.com.
Spectris combines precision with purpose, delivering progress for a more sustainable world. We provide critical insights to our customers through premium precision measurement solutions combined with technical expertise and deep domain knowledge. Precision is at the heart of what we do - our leading, high-tech instruments and software equip our customers to solve some of their greatest challenges to make the world cleaner, healthier and more productive. We are focused on two key Divisions – Spectris Scientific and Spectris Dynamics, which are placed in technology-driven end markets, with strong fundamentals and attractive growth trajectories. We have leading market positions in premium segments and employ 7,300 people located in more than 30 countries, all united behind our purpose to deliver value beyond measure for all our stakeholders. For more information, visit www.spectris.com.