2017 Half Year Results

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Spectris plc (SXS: LSE), the productivity-enhancing instrumentation and controls company, announces half year results for the six months ended 30 June 2017.

Adjusted* H1 2017 H1 2016 Change Change at CER* Like-for-like change*
Reported sales, £m 710.0 581.4 22% 10% 5%
Adjusted operating profit
excluding Project Uplift costs, £m
75.3 69.4 8% -1% -3%
Project Uplift net cost, £m (8.8) (0.5)
Adjusted operating profit, £m 66.5 68.9 -4% -13% -15%
Adjusted profit before tax, £m 63.8 66.5 -4%
Adjusted earnings per share, pence 42.3p 43.0p -2%
Adjusted return on sales, % 9.4% 11.9% -2.5pp
Dividend, pence 19.0p 18.0p 6%
Reported
Reported sales, £m 710.0 581.4 22%
Reported operating profit, £m 42.1 46.6 -10%
Reported profit before tax, £m 37.6 41.0 -8%
Basic earnings per share, pence 26.8p 26.0p 3%
Reported return on sales, % 5.9% 8.0% -2.1pp

* Adjusted performance measures (‘APMs’) are used consistently throughout this press release and are referred to as ‘adjusted’, ‘constant exchange rate’ or ‘like-for-like’. These are defined in full and reconciled to the IFRS statutory measures in Note 2.

Highlights

– Sales of £710.0 million, reflecting 5% organic sales growth and a 5% contribution from acquisitions
– Adjusted operating profit of £75.3 million excluding Project Uplift costs, a 3% LFL decrease year-on-year
– Project Uplift costs of £8.8 million; Phase 1 activities on track for expected benefits; shared service centre feasibility study completed and moving to the next phase
– Robust adjusted operating cash conversion of 119%
– Dividend per share increased by 6%

Commenting on the results, John O’Higgins, Chief Executive, said: “We are pleased to have delivered 5% organic sales growth in the first half of the year, albeit against a weak prior year comparator. We continue to focus on customer solutions, in particular the growth opportunities from the Malvern PANalytical merger and within the automotive sector, and building on the acquisitions and capital investments we have made over the past 12 months in services and software. Our activities under Project Uplift are making good progress; we are moving into the next phase of the shared service centre project and are on track to deliver the projected benefits for the year. Whilst we will continue to make further targeted strategic investments to support our growth ambitions in the second half, overall, our expectations for the full year remain unchanged.”

Contacts:

Spectris plc
John O’Higgins, Chief Executive
+44 1784 470 470

Clive Watson, Group Finance Director
+44 1784 470 470

Siobhán Andrews, Head of Corporate Affairs
+44 1784 470 470

FTI Consulting
Richard Mountain / Susanne Yule
+44 203 727 1340

A meeting with analysts will be held at 8:30am BST today at the offices of FTI Consulting. This will be available as a live webcast on the company’s website at www.spectris.com and a recording will be posted on the website after the meeting.

Copies of this press release are available to the public from the registered office at Heritage House, Church Road, Egham, Surrey TW20 9QD and on the company’s website at www.spectris.com.

About Spectris

Spectris plc is a leading supplier of productivity-enhancing instrumentation and controls. The Company’s products and technologies help customers to improve product quality and performance, improve core manufacturing processes, reduce downtime and wastage and reduce time to market. Its global customer base spans a diverse range of end-user markets. Spectris operates across four business segments which reflect the applications and industries it serves: Materials Analysis, Test and Measurement, In-line Instrumentation and Industrial Controls. Headquartered in Egham, Surrey, England, the Company employs approximately 9,000 people located in more than 30 countries. For more information, visit www.spectris.com.