Final Results
Spectris PLC
23 February 2007
Date: Embargoed until 7.00am, Friday 23 February, 2007
Contact: John O'Higgins, Chief Executive, Spectris plc Tel: 01784 470470
Clive Watson, Finance Director, Spectris plc Tel: 01784 470470
Richard Mountain, Financial Dynamics Tel: 020 7269 7121
2006 PRELIMINARY RESULTS
Spectris plc, the precision instrumentation and controls company, announces
preliminary results for the year ended 31 December 2006.
2006 2005 Increase
Sales from continuing businesses # (£m) 642.6 599.2 7%
Adjusted operating profit from continuing
businesses # (£m) * 83.2 71.5 16%
Adjusted operating profit (£m) * 85.7 73.5 17%
Adjusted profit before tax (£m) * 76.3 60.5 26%
Adjusted earnings per share (pence) * 43.7 36.2 21%
Statutory
Sales (£m) 684.5 655.9 4%
Profit before tax (£m) 85.6 50.8 69%
Basic earnings per share (pence) 49.4 28.8 72%
Dividend (pence) 17.5 15.8 11%
# Continuing businesses excludes businesses sold and held for sale
* For explanation of adjusted figures see Note 2
Highlights
• Sales from continuing businesses up 7% (8% at constant currencies)
• Operating margins from continuing businesses improved to 12.9%
• Net debt reduced by £48 million to £72 million, cash conversion of 107%
• Dividend increased by 11%
• Share buy-back of up to £75 million over the next twelve months
Commenting on the results, John O'Higgins, Chief Executive, said:
'2006 was a successful year, both in terms of the results achieved and in
positioning Spectris to deliver improved performance in 2007. The current year
has started on a strong note, with good order levels across all sectors and
geographies. As the benefits of management actions to improve margins further
are realised, we are confident of achieving continued good progress.'
CHAIRMAN'S STATEMENT
Overview
2006 was a good year for Spectris, with sales, profits and earnings per share
all increasing compared to the prior year. Total group operating margins
improved to 12.5% (12.9% in continuing businesses*) as the operational gearing
from robust growth and management restructuring actions in the past two years
began to deliver the desired benefits.
Total group sales increased by 4% to £684.5 million (2005: £655.9 million) and
operating profit increased by 17% to £85.7 million (2005: £73.5 million), or
12.5% of sales. Sales from continuing businesses increased by 7% to £642.6
million (2005: £599.2 million) and operating profit increased by 16% to £83.2
million (2005: £71.5 million), or 12.9% of sales. Profit before tax increased by
26% to £76.3 million (2005: £60.5 million) and earnings per share increased by
21% to 43.7p (2005: 36.2p). This performance was achieved notwithstanding some
adverse currency effects and a charge of £7.7 million (2005: £2.5 million) taken
through the income statement for restructuring in continuing businesses.
Underlying margins were therefore approaching the group's target range.
Operating cash conversion was strong at 107% of operating profit.
The Board proposes to pay a final dividend of 12.5p which, combined with the
interim dividend of 5.0p, gives a total of 17.5p (2005: 15.8p), an increase of
11%. The dividend will be paid on 22 June 2007 to shareholders on the register
at 1 June 2007.
An agreement for the sale of the Spectrum Inspection Systems business to
Illinois Tool Works Inc was signed on 22 February 2007 for completion on 28
February 2007. The total consideration is £16 million on a debt and cash-free
basis and subject to a working capital adjustment.
Share buy-back
Over the last three years, year-end net debt has reduced to £72 million from
£163 million, principally as a result of strong internal cash generation. In
addition to its ordinary dividend payments, the company now intends to return up
to £75 million over the next twelve months by way of a share buy-back programme.
This will improve the efficiency of the balance sheet, whilst also allowing the
company to retain the financial flexibility necessary to fund its continued
development.
Board changes
Having served for two terms as a non-executive director, Andrew Given, Senior
Independent Director, who joined the Board in 2001, will retire at the May 2007
AGM. I should like to thank Andrew for his contribution to the company and for
his Chairmanship of the Audit Committee during the past six years. John Warren
has assumed the latter role from 1 January 2007 and Tony Reading will become
Senior Independent Director with effect from the May 2007 AGM.
Outlook
2006 was a successful year, both in terms of the results achieved and in
positioning Spectris to deliver improved performance in 2007. The current year
has started on a strong note, with good order levels across all sectors and
geographies. As the benefits of management actions to improve margins further
are realised, we are confident of achieving continued good progress.
John Poulter
Chairman
* Unless otherwise stated, all sales and operating profit figures in the
narrative are on a continuing businesses basis and exclude the businesses sold
and held for sale. Figures for operating profit, profit before tax and earnings
per share are adjusted measures - for explanation of adjusted figures see Note
2.
CHIEF EXECUTIVE'S REVIEW
Introduction
Spectris made good progress in 2006, with sales from continuing businesses
increasing by 7% to £642.6 million and adjusted operating profit increasing by
16% to £83.2 million. At constant currencies, sales increased by 8%. Margins
improved to 12.9% (2005: 11.9%), benefiting from the increased volume, ongoing
management actions to reduce costs, and the introduction of new products.
Cost reduction programmes and active management of working capital continued to
deliver results, with the primary focus on reducing overheads and conserving
cash. A group-wide initiative to increase the proportion of components purchased
from lower-cost regions is progressing well, with many operations expected to
achieve significant cost savings. The two businesses which had been loss-making
in the prior year decisively returned to profitability. Cash conversion was
again strong and average working capital as a percentage of sales reduced by 1.7
percentage points to 13.7%.
We made some changes to the composition of the group during the year, with the
disposal of Arcom to Eurotech S.p.A., and the acquisitions of Spectral
Dimensions Inc (SDI), a specialist in chemical imaging for the pharmaceutical
industry, and IPI LLC, a leader in paper coating applications. In addition,
PANalytical added a direct presence in Korea, Brazil and Mexico by acquiring its
distributors in these key regions. An agreement to sell Spectrum Inspection
Systems was signed with Illinois Tool Works Inc on 22 February 2007. The
disposal of a further small business in the In-line Instrumentation sector is
also underway.
All three sectors grew sales from continuing businesses. There was double-digit
growth in sales and profits in the Process Technology sector, partly due to
strong demand from the pharmaceutical and life sciences markets. The continuing
elimination of lower-margin business moderated sales growth in the In-line
Instrumentation sector, where one-off costs for restructuring also reduced
profitability. Sales and profits in the Electronic Controls sector increased and
operating margins also improved in the second half. The focus on service and
consumables continued in the Process Technology and In-line Instrumentation
sectors and remains a key requirement for global customers. Individual sector
performance is described in more detail below.
The major geographic regions showed growth during 2006. Expansion into Asia
continues, with sales from continuing businesses up by 9% (11% at constant
currencies). This region now represents 28% of group sales, reflecting our
ongoing commitment and investment in this region over past years. Sales in North
America increased by 9% (10% at constant currencies). Sales in Europe increased
by 6% (6% at constant currencies), led by strong growth in Germany which grew by
9% (10% at constant currencies).
Expenditure on research and development of £44.7 million was maintained at prior
year levels and a number of significant new product platforms were launched
during the year. These will enable our businesses to maintain their leading
positions and grow revenues.
Sector performance
Process Technology
The Process Technology sector had an excellent year, with double-digit sales and
profit growth. Sales increased by 11% to £343.6 million with operating profit
increasing by 40% to £45.2 million. Operating margins improved from 10.4% to
13.2%. Profitability in this sector was impacted by one-off costs of £1.9
million incurred for restructuring operations.
Sales into the pharmaceutical industry increased during the year and this is now
Spectris' largest end user market at just over 10% of sales. There was strong
demand for pharmaceutical applications for Malvern, PANalytical and Particle
Measuring Systems, particularly in Europe and North America. Malvern's solutions
for the biotech and nanotechnology sectors also grew strongly. The acquisition
of SDI during the year added near-infrared chemical imaging instruments to
complement Malvern's existing offering to its pharmaceutical customers. The
acquisition has been successfully integrated and has attracted significant
interest from customers.
Higher demand for storage devices and flat panel displays in the semiconductor
and electronics markets benefited Fusion, PANalytical and Particle Measuring
Systems. Fusion's UV curing systems are used in the production of
functionalised films which are an essential component in flat panel displays.
Sales of PANalytical's X-ray technologies and Particle Measuring Systems'
contamination detection systems to the semiconductor and electronics industries
increased as customers continued to invest in new equipment, particularly in
Asia.
Rising environmental awareness led to increased opportunities for Bruel & Kjaer
Sound & Vibration and PANalytical, partly as a result of new legislation and
directives. Legislation introduced to limit environmental noise, which is
increasingly affecting major cities, airports and roads around the world,
benefited Bruel & Kjaer Sound & Vibration where contracts have been received,
amongst others, for noise management systems in the cities of Madrid and Beijing
and at airports in Taiwan. PANalytical also benefited from developments in this
area, providing X-ray instrumentation to measure hazardous substances such as
cadmium and other metals, whose elimination from consumer goods is required to
comply with new environmental legislation.
Spectris companies providing test and measurement equipment to the automotive
and aerospace industries have seen growth as new development programmes come on
stream. Bruel & Kjaer Sound & Vibration, along with two other leading Noise
Vibration Harshness (NVH) technology companies, was involved in the creation of
an Application Research Center at Canton, Michigan, USA. This facility, which
opened in June 2006, will help automotive manufacturers and their suppliers to
optimise the sound and vibration characteristics of their products.
The mining and minerals industries experienced good growth as customers invested
in new production and refining capacity globally, but particularly in Asia and
Latin America. Both PANalytical and Malvern provide solutions to improve
productivity in this market. PANalytical has increased its presence in these
regions with the acquisition of its distributors in Korea, Brazil and Mexico,
providing direct sales and support operations to customers in these important
markets.
In-line Instrumentation
The In-line Instrumentation sector grew sales by 2% to £164.2 million. Profits
at £21.1 million (2005: £22.6 million) were impacted by one-off costs of £5.1
million (2005: £nil) for restructuring operations at Beta LaserMike, Bruel &
Kjaer Vibro and BTG. Operating margins were 12.9% (2005: 14.0%), or 16.0% before
restructuring (2005: 14.0%).
Consolidation in the pulp and paper industry continues, with fewer, but larger,
mills now in operation. Increased machine speeds mean that the cost of downtime
is rising, which has benefited BTG Duroblade. BTG's high performance blades
greatly extend operational life, which reduces machine downtime. The acquisition
of IPI enables BTG to offer a broader range of products for coating applications
worldwide. Spending on higher-value analysers by mill owners is still at a low
level, but is expected to recover as pressure to increase production efficiency
continues to rise.
There was strong demand from the converting market in North America following
several years of under-investment, which helped drive sales of NDC's web
scanning systems. Higher energy prices and the continued investment in new plant
resulted in strong demand for Servomex's gas analysis solutions and for Bruel &
Kjaer Vibro's safety condition monitoring systems.
Electronic Controls
Sales in the Electronic Controls sector increased by 6% to £134.8 million, with
profit up by 2% to £16.9 million. Operating margins were 12.5%. Profitability
was impacted by one-off costs of £0.7 million incurred for restructuring
operations.
HBM recovered in the second half of the year in line with expectations, with
strong sales to automotive and aerospace customers. The recently introduced
digital torque measurement solution for automotive R&D applications was well
received. This new product line has an important role to play in the development
cycle of engines, powertrain components and brakes. Sales to the aerospace
industry also increased - typical applications in this market include component
stress or functionality testing, landing gear drop tests and wind tunnel and
aerodynamic testing.
The general manufacturing sector was strong globally. Sales of Microscan's
barcode scanners grew, with the Quadrus Mini product, a small high resolution
imager, proving particularly successful. The company also launched the MS-4, a
miniature imager for reading 2D barcodes in small spaces, which is particularly
suitable for healthcare applications.
Red Lion Controls grew sales of its human machine interface (HMI) display and
new network communication products with both end users and original equipment
manufacturers. Demand for the company's industrial panel meters also increased
following the launch of the CUB5 series which feature all the functionality and
performance of a full-size panel meter condensed into a small, easy-to-mount
solution.
Looking ahead
We will continue to pursue our objective of margin enhancement and cash
generation in 2007 as the benefits of management actions are realised and as we
drive cost competitiveness across our businesses. The introduction of new
products and applications will bring additional organic growth and benefits in
the year. We will increase our focus on the strategic development of Spectris
during 2007, completing our divestiture activity and continuing the pursuit of
acquisition opportunities which strategically fit our businesses and will
enhance shareholder value.
John O'Higgins
Chief Executive
FINANCIAL REVIEW
Introduction
Spectris uses adjusted figures as key performance measures in addition to those
reported under IFRS. Adjusted figures are stated before amortisation of
acquisition-related intangible assets, goodwill charges, profits or losses on
the termination or disposal of businesses or major fixed 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. Unless
otherwise stated all profit and earnings figures referred to below are adjusted
measures.
The Arcom and Spectrum businesses were divested in March 2006 and February 2007
respectively (as described further below). In addition, one other business in
the In-line Instrumentation sector is presented in these financial statements as
'held for sale' as it is intended that it is divested during 2007. The results
of these three businesses are not considered to be sufficiently material to be
presented as discontinued operations under IFRS. However, in order to aid
understanding of the results for the ongoing business, references below to the
sales and operating profit results for 'continuing businesses' exclude the
results of these three businesses.
Operating Performance
Total group 2006 2005 Increase
Sales (£m) 684.5 655.9 4%
Operating profit (£m) 85.7 73.5 17%
Operating margin 12.5% 11.2% 1.3pp
Continuing businesses
Sales (£m) 642.6 599.2 7%
Operating profit (£m) 83.2 71.5 16%
Operating margin 12.9% 11.9% 1.0pp
Total group sales increased by 4% and sales in continuing businesses increased
by 7%. Adverse movements in foreign currency exchange rates had an impact of
approximately 1% on sales, meaning that total group sales and sales in
continuing businesses increased by approximately 5% and 8% respectively on a
constant currency basis. The year-on-year impact on sales from acquisitions was
approximately £2.2 million or 0.4% of sales in continuing businesses.
Adjusted operating profit rose by 17% overall and by 16% in continuing
businesses, with operating margins improving from 11.2% to 12.5% overall, and
from 11.9% to 12.9% on a continuing businesses basis. This growth in operating
profit was driven by the increase in sales and good cost control, and was
achieved despite the significant one-off cost of restructuring in several
businesses which amounted to some £7.7 million in the year (2005: £3.1 million
including £0.6 million in one business being divested). The impact on operating
profit from both acquisitions and foreign currency exchange rate movements
(after taking account of the benefit of the group's hedging arrangements) was
minor.
Interest costs, including IAS 19 pension charges, reduced from £13.0 million to
£9.4 million, reflecting the consistent reduction in the level of net debt
during the year. After taking account of lower interest costs, adjusted profit
before tax increased by 26% from £60.5 million to £76.3 million.
Unadjusted operating profit, after including goodwill charges of £1.2 million
(2005: £7.4 million) and acquisition-related intangible asset amortisation of
£1.8 million (2005: £1.2 million), increased by 27% from £64.9 million to £82.7
million. The goodwill charge of £1.2 million in 2006 relates to a technical
reduction of goodwill under IFRS following the recognition of an equal and
opposite deferred tax asset relating to the acquisition of PANalytical in 2002.
Unadjusted profit before tax increased by 69% from £50.8 million to £85.6
million. In addition to goodwill charges and acquisition-related intangible
asset amortisation charges, the 2006 result includes unrealised gains of £2.8
million on the group's cross-currency interest rate swaps (2005: unrealised loss
of £1.1 million). Additionally in 2005, income of £1.7 million from the
disposal of Luxtron was offset by an unrealised loss relating to changes in fair
value of average rate options.
Acquisitions and disposals
During the year, the group acquired two businesses and, in addition, a number of
distributors in markets where a direct presence was sought. The total
consideration, including acquisition expenses and net debt acquired, as well as
deferred and contingent consideration expected to be paid in future years, was
£16.5 million. The largest of these acquisitions took place close to the end of
2006. These acquisitions contributed £1.6 million of sales during the year.
In March 2006, Spectris sold the Arcom business to Eurotech S.p.A for net
proceeds (after taking account of transaction costs) of £13.3 million, giving
rise to a profit on disposal of £9.5 million. An agreement for the sale of the
Spectrum Inspection Systems business to Illinois Tool Works Inc was signed on 22
February 2007 for completion on 28 February 2007. The total consideration is £16
million on a debt and cash-free basis and subject to a working capital
adjustment. The profit on disposal will be reflected in the 2007 accounts.
It is also the intention to divest one other business in the In-Line
Instrumentation sector in 2007 and accordingly the assets and liabilities of
this business, together with those of Spectrum, are presented as 'held for sale'
in the group balance sheet.
Taxation
The effective tax rate on profits was 28.8% (2005: 26.9%), an increase of
approximately 2 percentage points. The effective tax rate continues to be below
the weighted average statutory tax rate of 32.1% (2005: 32.8%), primarily as a
consequence of the recognition of tax assets arising in prior years in the UK.
The increase in the tax rate in 2006 was due to a reduction in the benefit from
tax planning and brought forward loss utilisation. The underlying tax charge is
expected to continue to move closer to the weighted average statutory tax rate
in future.
Earnings per share
Adjusted earnings per share increased by 21% from 36.2p to 43.7p, reflecting the
net impact of a 26% increase in profit before tax, partially offset by the
rising tax charge.
Basic earnings per share increased by 72% from 28.8p to 49.4p. The differences
between the two measures are shown in the table below.
2006 2005
Pence Pence
Basic earnings per share 49.4 28.8
Goodwill charges and acquisition-related intangible asset
amortisation 2.4 7.0
Profit on disposal of business (7.6) -
Income from disposal of Luxtron - (1.4)
Unrealised changes in fair value of financial instruments (2.3) 2.3
Tax effect of the above and other tax items that do not form part
of the underlying tax rate 1.8 (0.5)
____ ____
Adjusted earnings per share 43.7 36.2
The weighted average number of shares outstanding during the year increased from
122.1 million to 124.3 million. This increase arose as a result of both the
exercise of share options in the year and a further disposal of a proportion of
the own shares held by the Spectris Employee Benefit Trust for cash proceeds of
£0.9 million (2005: £9.5 million).
Cash Flow
2006 2005
Operating cash flow £m £m
Adjusted operating profit 85.7 73.5
Add back: depreciation 13.2 12.6
Working capital movement/other 3.1 4.5
Net cash flow from operating activities before capital expenditure 102.0 90.6
Capital expenditure (10.5) (12.2)
Operating cash flow 91.5 78.4
Cash conversion 107% 107%
Non-operating cash flow
Tax paid (21.5) (15.8)
Interest paid (11.2) (12.7)
Dividends paid (20.2) (18.1)
Acquisitions (13.6) (3.0)
Disposals 13.3 -
Exercise of share options 5.3 2.5
Sale of own shares by Employee Benefit Trust 0.9 9.5
Exchange/other 3.7 (1.8)
Total non-operating cash flow (43.3) (39.4)
Operating cash flow 91.5 78.4
Movement in net debt 48.2 39.0
Cash conversion of operating profit to operating cash was 107% (2005: 107%).
This was achieved through continued control of both working capital and capital
expenditure and is also in part attributable to restructuring charges that did
not result in cash outflows in 2006. Inventory turns improved from 4.2 times at
December 2005 to 4.4 times at the end of 2006. Debtor days outstanding also
improved, reducing from 60 days at December 2005 to 58 days at the end of 2006.
Over the same period, year end working capital expressed as a percentage of
sales reduced from 15.7% to 14.8% and average working capital expressed as a
percentage of sales reduced from 15.4% to 13.7%.
Capital expenditure during the year equated to 1.5% of sales (2005: 1.9%) and,
at £10.5 million (2005: £12.2 million), was 80% of depreciation (2005: 97%).
This unusually low level was primarily due to timing differences which will
reverse in 2007.
The level of tax paid in 2006 was higher than in 2005 due primarily to the
increase in profits and the reduced utilisation of tax losses brought forward in
2006.
Overall, net debt fell by £48.2 million (2005: £39.0 million) from £119.9
million to £71.7 million. Interest cost, excluding the financing charge arising
from IAS 19, was covered by adjusted operating profit 9.4 times (2005: 5.8
times), providing significant headroom over and above banking covenants which
require a minimum of 3 times cover.
Financing and Treasury
The group finances its operations from both retained earnings and third party
borrowings, the majority of which are currently at fixed rates of interest.
The $100 million 1996 US Private Placement loan notes were repaid on their due
date of 15 July 2006. The repayment was funded predominantly from existing cash
resources with the balance funded from available borrowing facilities. Following
this repayment, the group's principal borrowings relate to its 2000 and 2003 US
Private Placement loan notes which had been swapped into Euro-denominated
borrowings using cross-currency interest rate swaps. In order to redress the
balance between the group's US dollar and Euro-denominated borrowings, given the
group's relative investments in Euro and US dollar-denominated assets, the group
cancelled the cross-currency interest rate swap attached to the $75 million 2000
US Private Placement loan note borrowings such that they revert to being US
dollar-denominated borrowings. No charge to the income statement arose from the
cancellation of this cross-currency swap in 2006 since the cost was previously
fully provided for.
At the year end, 97% of group borrowings were at fixed interest rates (2005:
99%). The ageing profile at the year end showed that 4% of debt is due to
mature within one year (2005: 30%), 31% of debt was due to mature in between one
and five years (2005: 29%) and the remaining 65% in more than five years (2005:
41%).
Share buy-back
Over the last three years, year-end net debt has reduced to £72 million from
£163 million, principally as a result of strong internal cash generation. In
addition to its ordinary dividend payments, the company now intends to return up
to £75 million over the next twelve months by way of a share buy-back programme.
This will improve the efficiency of the balance sheet, whilst also allowing the
company to retain the financial flexibility necessary to fund its continued
development. The shares will be held in treasury.
Currency
The group has both translational and transactional currency exposures.
Translational exposures arise on the consolidation of overseas company results
into sterling. Transactional exposures arise where the currency of sale or
purchase invoices differs from the functional currency in which each company
prepares its local accounts. The transactional exposures include situations
where foreign currency denominated trade debtor, trade creditor and cash
balances are held.
The largest transactional exposures are to the US dollar and, to a lesser
extent, the Euro and the Japanese Yen. The largest translational exposures are
to the US dollar, Euro and Danish Krone. The table below shows the key average
exchange rates during 2005 and 2006. Translational currency exposures are not
hedged.
2006 2005
(average) (average)
US $ 1.84 1.82
Euro 1.47 1.46
Yen 214 200
Forward exchange contracts are used to hedge forecast sale transactions where
there is reasonable certainty of an exposure. At 31 December 2006, approximately
65% of the estimated US dollar and Japanese Yen exposures for 2007 were hedged
using forward exchange contacts.
Defined benefit pension schemes
Operating profit includes a defined benefit pension scheme current service
charge of £0.8 million (2005: £0.7 million). The net pension liability in the
balance sheet (before taking account of the related deferred tax asset) has
reduced to £18.8 million (2005: £22.6 million), largely as a consequence of cash
contributions into the schemes and actuarial gains on the scheme assets. During
2006, the group increased its cash contributions into the defined benefit
pension schemes to £3.3 million (2005: £3.2 million).
Clive Watson
Group Finance Director
- ENDS -
A table of results is attached.
The company will broadcast the meeting with analysts in a live webcast
commencing at 8.30 AM GMT on the company's website at www.spectris.com.
Copies of this notice are available to the public from the registered office at
Station Road, Egham, Surrey TW20 9NP, and on the company's website at
www.spectris.com.
CONSOLIDATED INCOME STATEMENT
For the year ended 31 December 2006
Notes 2006 2005
£m £m
Continuing operations
3 Revenue 684.5 655.9
Cost of sales (288.7) (278.6)
Gross profit 395.8 377.3
Indirect production and engineering expenses (60.8) (62.8)
Sales and marketing expenses (171.6) (173.5)
Administrative expenses (80.7) (76.1)
82.7 64.9
3 Operating profit
Profit on disposal of business 9.5 -
4 Financial income 9.0 6.6
4 Finance costs (15.6) (20.7)
Profit before tax 85.6 50.8
5 Taxation - UK (0.5) (0.5)
5 Taxation - Overseas (23.7) (15.1)
Profit after tax for the year from continuing operations 61.4 35.2
attributable to equity shareholders
7 Basic earnings per share 49.4p 28.8p
7 Diluted earnings per share 49.2p 28.8p
6 Interim dividends paid and final dividends proposed for the 17.5p 15.8p
year (per share)
6 Dividends paid during the year (per share) 16.2p 14.85p
Spectris uses adjusted figures as key performance measures in addition to those
reported under adopted IFRS. Adjusted figures are stated before amortisation of
acquisition-related intangible assets, goodwill charges, profits or losses on
termination or disposal of businesses or major fixed 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.
Reconciliations showing how the adjusted performance measures are derived from
those reported under adopted IFRS are set out in Note 2.
CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE
For the year ended 31 December 2006
2006 2005
£m £m
Net gain/(loss) on effective portion of changes in fair value of 1.7 (1.3)
forward exchange contracts
Deferred tax on changes in fair value of forward exchange contracts (0.5) 0.4
Net gain/(loss) on changes in fair value of effective portion of net 7.6 (1.9)
investment hedge
Actuarial gain/(loss) arising on pension schemes 1.8 (4.1)
Exchange differences on pension schemes 0.4 -
Current and deferred tax on actuarial gains and losses on pension (0.6) 1.3
schemes
Foreign exchange difference on translation of overseas operations (19.9) -
Current tax on foreign exchange differences (0.1) 0.4
Net expense recognised in equity in respect of year (9.6) (5.2)
Profit for the year 61.4 35.2
Total recognised income and expense for the year attributable to 51.8 30.0
equity shareholders
Changes in accounting policy: adoption of IAS 39 Financial
Instruments: Recognition and Measurement as at 1 January 2005
Hedging reserve
Fair value of forward exchange contracts - 0.8
Deferred tax on forward exchange contracts - (0.2)
Retained earnings
Fair value of cross-currency interest rate swaps - (7.6)
Fair value of average rate options - 1.7
Deferred tax on the above - 1.8
- (3.5)
51.8 26.5
CONSOLIDATED BALANCE SHEET
At 31 December 2006
2006 2005
£m £m
Assets
Non-current assets
Goodwill 207.4 209.5
Other intangible assets 8.0 4.1
Property, plant & equipment 83.2 92.8
Deferred tax asset 37.6 44.6
336.2 351.0
Current assets
Inventories 81.6 88.2
Taxation recoverable 0.5 0.9
Trade and other receivables 145.4 150.4
Derivative financial instruments 1.3 -
Cash and cash equivalents 51.0 77.1
Assets held for sale 17.3 5.9
297.1 322.5
Total assets 633.3 673.5
Liabilities
Current liabilities
Short-term borrowings (4.3) (59.4)
Derivative financial instruments - (0.6)
Trade and other payables (124.2) (132.4)
Current tax liabilities (32.9) (32.4)
Provisions (21.8) (12.3)
Liabilities held for sale (6.0) (3.7)
(189.2) (240.8)
Net current assets 107.9 81.7
Non-current liabilities
Medium and long-term borrowings (108.6) (121.6)
Derivative financial instruments (12.8) (24.7)
Other payables (8.8) (6.7)
Retirement benefit obligations (18.8) (22.6)
Provisions - (0.6)
Deferred tax liability (1.0) (1.0)
(150.0) (177.2)
Total liabilities (339.2) (418.0)
Net assets 294.1 255.5
Equity
Issued share capital 6.2 6.2
Share premium 231.1 229.1
Retained earnings 67.3 20.1
Translation reserve (15.1) (2.8)
Hedging reserve 1.2 (0.5)
Merger reserve 3.1 3.1
Capital redemption reserve 0.3 0.3
Equity shareholders' funds 294.1 255.5
Total equity and liabilities 633.3 673.5
CONSOLIDATED CASH FLOW STATEMENT
For the year ended 31 December 2006
2006 2005
Notes £m £m
Cash flows from operating activities
Profit after tax 61.4 35.2
Adjustments for:
5 Tax 24.2 15.6
Profit on disposal of business (9.5) -
4 Finance costs 15.6 20.7
4 Financial income (9.0) (6.6)
Depreciation 13.2 12.6
Amortisation of intangible assets 1.9 1.3
Goodwill impairment charge - 7.4
Goodwill reduction 1.2 -
Loss on sale of property, plant & equipment 0.5 0.3
Equity settled share-based payment expense 0.6 0.3
Operating profit before changes in working capital and 100.1 86.8
provisions
Increase in trade and other receivables (8.9) (4.5)
(Increase)/decrease in inventories (1.0) 6.2
Increase in trade and other payables 4.4 2.8
Increase/(decrease) in provisions and employee benefits 7.4 (0.7)
Corporation tax paid (21.5) (15.8)
Net cash from operating activities 80.5 74.8
Cash flows from investing activities
Purchase of property, plant & equipment (10.5) (12.3)
Proceeds from sale of property, plant & equipment - 0.1
Acquisition of businesses, net of cash acquired (13.6) (2.3)
Disposal of subsidiary undertakings 13.3 -
Interest received 2.0 1.1
Dividend income - 0.1
Other financial income - 1.7
Net cash flows used in investing activities (8.8) (11.6)
Cash flows from financing activities
Interest paid (13.2) (13.8)
6 Dividends paid to equity holders of the parent (20.2) (18.1)
Share options exercised by issue of share capital 1.5 1.3
Share options exercised from shares held by Employee 3.8 1.2
Benefit Trust
Sale of own shares by Employee Benefit Trust 0.9 9.5
Cancellation of cross-currency swap (2.9) -
Repayment of borrowings (65.9) (0.2)
Decrease in finance lease liabilities (0.4) -
Net cash flows used in financing activities (96.4) (20.1)
Net (decrease)/increase in cash and cash equivalents (24.7) 43.1
Cash and cash equivalents at beginning of year 76.1 34.1
Effect of foreign exchange rate changes (4.4) (1.1)
Cash and cash equivalents at end of year 47.0 76.1
Reconciliation of changes in cash and cash equivalents to movements in net debt
2006 2005
£m £m
Net (decrease)/increase in cash and cash equivalents (24.7) 43.1
Repayment of borrowings 65.9 0.2
Decrease/(increase) in finance lease liabilities 0.4 (0.5)
Borrowings acquired on acquisitions - (0.7)
Effect of foreign exchange rate changes 6.6 (3.1)
Movement in net debt 48.2 39.0
Net debt at start of year (119.9) (158.9)
Net debt at end of year (71.7) (119.9)
RECONCILIATION OF MOVEMENT IN CAPITAL AND RESERVES
For the year ended 31 December 2006
Share Share Retained Translation Hedging Merger Capital Total
capital premium earnings reserve reserve reserve redemption equity
reserve
£m £m £m £m £m £m £m £m
Equity as at 31 December
2004 6.2 227.8 (1.7) (0.9) - 3.1 0.3 234.8
Change in accounting policy:
adoption of IAS 39 Financial
Instruments: Recognition and
Measurement - - (4.3) - 0.8 - - (3.5)
Equity at 1 January 2005 6.2 227.8 (6.0) (0.9) 0.8 3.1 0.3 231.3
Gains and losses - year ended
31 December 2005
Total recognised income and
expense - - 33.2 (1.9) (1.3) - - 30.0
Total gains and losses 6.2 227.8 27.2 (2.8) (0.5) 3.1 0.3 261.3
Distributions to and transactions
with shareholders
Equity dividends paid - - (18.1) - - - - (18.1)
Share-based payments - - 0.3 - - - - 0.3
Share options exercised from
shares held by Employee Benefit
Trust - - 1.2 - - - - 1.2
Sale of own shares by Employee
Benefit Trust - - 9.5 - - - - 9.5
Exercise of equity share options - 1.3 - - - - - 1.3
Equity as at 31 December 2005 6.2 229.1 20.1 (2.8) (0.5) 3.1 0.3 255.5
Gains and losses - year ended
31 December 2006
Total recognised income and
expense - - 62.4 (12.3) 1.7 - - 51.8
Total gains and losses 6.2 229.1 82.5 (15.1) 1.2 3.1 0.3 307.3
Distributions to and transactions
with shareholders
Equity dividends paid - - (20.2) - - - - (20.2)
Share-based payments - - 0.6 - - - - 0.6
Share options exercised from
shares held by Employee Benefit
Trust - - 3.8 - - - - 3.8
Sale of own shares by Employee
Benefit Trust - - 0.9 - - - - 0.9
Exercise of equity share options - 2.0 (0.3) - - - - 1.7
Equity as at 31 December 2006 6.2 231.1 67.3 (15.1) 1.2 3.1 0.3 294.1
NOTES TO THE ACCOUNTS
1. PRINCIPAL ACCOUNTING POLICIES AND BASIS OF PREPARATION
Spectris plc is a limited company incorporated and domiciled in the United
Kingdom under the Companies Act 1985, whose shares are publicly traded on the
London Stock Exchange.
The group's financial statements have been prepared and approved by the
directors in accordance with International Financial Reporting Standards as
adopted by the EU (adopted IFRS).
The financial statements are prepared rounded to the nearest hundred thousand on
the historical cost basis except that the derivative financial instruments are
stated at fair value and non-current assets and disposal groups held for sale
are stated at the lower of carrying amount and fair value less costs to sell.
The preparation of financial statements in conformity with adopted IFRS requires
management to make judgements, estimates and assumptions that affect the
application of policies and the reported amount of assets and liabilities,
income and expenses. The estimates and associated assumptions are continually
evaluated and are based on historical experience and various other factors that
are believed to be reasonable under the circumstances. Actual results may differ
from these estimates. The estimates and assumptions that have a significant
effect on the carrying amount of assets and liabilities are noted within
specific accounting policies. Revisions to accounting estimates are recognised
in the period in which the estimate is revised if the revision affects only that
period or in the period of the revision and future periods if the revision
affects both current and future periods.
The accounting policies set out have been applied consistently by group entities
to all periods presented in these financial statements.
The financial statements were authorised for issue by the directors on 23
February 2007.
2. ADJUSTED PERFORMANCE MEASURES
Spectris uses adjusted figures as key performance measures in addition to those
reported under adopted IFRS. Adjusted figures are stated before amortisation of
acquisition-related intangible assets, goodwill charges, profits or losses on
termination or disposal of businesses or major fixed 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 (see Note 5).
The adjusted performance measures are derived from the reported figures under
adopted IFRS as follows:
Adjusted sales 2006 2005
£m £m
Sales as reported under adopted IFRS 684.5 655.9
Discontinuing businesses (41.9) (56.7)
Adjusted sales for continuing businesses 642.6 599.2
Adjusted sales by segment - 2006
Process In-line Electronic 2006
Technology Instrumentation Controls Total
£m £m £m £m
Sales as reported under adopted IFRS 343.6 202.2 138.7 684.5
Discontinuing businesses - (38.0) (3.9) (41.9)
Adjusted sales for continuing businesses 343.6 164.2 134.8 642.6
Adjusted sales by segment - 2005 Process In-line Electronic 2005
Technology Instrumentation Controls Total
£m £m £m £m
Sales as reported under adopted IFRS 310.1 202.3 143.5 655.9
Discontinuing businesses - (40.6) (16.1) (56.7)
Adjusted sales for continuing businesses 310.1 161.7 127.4 599.2
Adjusted operating profit 2006 2005
£m £m
Operating profit as reported under adopted IFRS 82.7 64.9
Amortisation of acquisition-related intangible assets 1.8 1.2
Goodwill impairment charge - 7.4
Goodwill reduction 1.2 -
Adjusted operating profit 85.7 73.5
Discontinuing businesses (2.5) (2.0)
Adjusted operating profit for continuing businesses 83.2 71.5
Restructuring charges for continuing businesses 7.7 2.5
Adjusted profit for continuing businesses before
restructuring charges 90.9 74.0
Adjusted operating profit by segment - Process In-line Electronic 2006
2006 Technology Instrumentation Controls Total
£m £m £m £m
Segment result under adopted IFRS 42.6 22.9 17.2 82.7
Amortisation of acquisition-related
intangible assets 1.7 0.1 - 1.8
Goodwill reduction 1.2 - - 1.2
Adjusted operating profit 45.5 23.0 17.2 85.7
Discontinuing businesses - (2.3) (0.2) (2.5)
Corporate cost reallocation (0.3) 0.4 (0.1) -
Adjusted operating profit for continuing
businesses 45.2 21.1 16.9 83.2
Restructuring charges for continuing
businesses 1.9 5.1 0.7 7.7
Adjusted profit for continuing businesses
before restructuring charges 47.1 26.2 17.6 90.9
The adjustment for corporate cost reallocation is a consequence of the
adjustment for discontinuing businesses and reallocates all corporate costs to
the continuing businesses.
Adjusted operating profit by segment - Process In-line Electronic 2005
2005 Technology Instrumentation Controls Total
£m £m £m £m
Segment result under adopted IFRS 31.2 15.5 18.2 64.9
Amortisation of acquisition-related
intangible assets 1.2 - - 1.2
Goodwill impairment charge - 7.4 - 7.4
Adjusted operating profit 32.4 22.9 18.2 73.5
Discontinuing businesses - (0.3) (1.7) (2.0)
Adjusted operating profit for continuing
businesses 32.4 22.6 16.5 71.5
Restructuring charges for continuing
businesses 2.5 - - 2.5
Adjusted profit for continuing businesses
before restructuring charges 34.9 22.6 16.5 74.0
Adjusted profit before tax 2006 2005
£m £m
Profit before tax as reported under adopted IFRS 85.6 50.8
Amortisation of acquisition-related intangible assets 1.8 1.2
Goodwill impairment charges - 7.4
Goodwill reduction 1.2 -
Profit on disposal of business (9.5) -
Unrealised change in fair value of cross-currency interest
rate swaps (2.8) 1.1
Unrealised change in fair value of average rate options - 1.7
Other financial income - (1.7)
Adjusted profit before tax 76.3 60.5
Operating cash flow 2006 2005
£m £m
Net cash from operating activities under adopted IFRS 80.5 74.8
Corporation tax paid 21.5 15.8
Purchase of property, plant & equipment (10.5) (12.3)
Proceeds from sale of property, plant & equipment - 0.1
Operating cash flow for management purposes 91.5 78.4
Adjusted earnings per share 2006 2005
£m £m
Profit after tax as reported under adopted IFRS 61.4 35.2
Adjusted for:
Amortisation of acquisition-related intangible
assets 1.8 1.2
Goodwill impairment charge - 7.4
Goodwill reduction 1.2 -
Profit on disposal of business (9.5) -
Unrealised change in fair value of cross-currency interest rate swaps (2.8) 1.1
Unrealised change in fair value of average rate options - 1.7
Other financial income - (1.7)
Tax effect of the above 3.4 (1.5)
Other tax items not forming part of the underlying tax rate (1.2) 0.8
Adjusted earnings 54.3 44.2
Weighted average number of shares outstanding (millions) 124.3 122.1
Adjusted earnings per share (pence) 43.7 36.2
Adjusted diluted earnings per share 2006 2005
Adjusted earnings (as above) (£m) 54.3 44.2
Diluted weighted average number of shares outstanding (millions) 124.7 122.4
Adjusted diluted earnings per share (pence) 43.5 36.1
Analysis of net debt for management purposes 2006 2005
£m £m
Bank overdrafts 4.0 1.0
Bank loans - secured 2.7 3.2
Unsecured loan notes 106.1 176.3
Cross-currency interest rate swaps - currency portion 9.8 16.0
Finance lease liabilities 0.1 0.5
Total borrowings 122.7 197.0
Cash balances (51.0) (77.1)
Net debt 71.7 119.9
Analysis of revenue by geographical destination 2006 2005
for continuing businesses £m £m
UK 28.6 29.7
Continental Europe 244.5 228.8
North America 157.0 143.6
Japan 55.5 53.5
China 49.0 44.0
Rest of Asia Pacific 74.7 66.9
Rest of the world 33.3 32.7
Total continuing businesses 642.6 599.2
Discontinuing businesses 41.9 56.7
Group total 684.5 655.9
3. SEGMENTAL INFORMATION
The group's primary reporting format is business segments and its secondary
format is geographical segments.
Segment revenue Inter-segment External customer Segment result
revenue revenue
2006 2005 2006 2005 2006 2005 2006 2005
£m £m £m £m £m £m £m £m
Process Technology 344.6 311.6 (1.0) (1.5) 343.6 310.1 42.6 31.2
In-line Instrumentation 202.9 202.8 (0.7) (0.5) 202.2 202.3 22.9 15.5
Electronic Controls 138.7 143.6 - (0.1) 138.7 143.5 17.2 18.2
Eliminate inter-segment
sales (1.7) (2.1) 1.7 2.1 - - - -
Total continuing operations 684.5 655.9 - - 684.5 655.9 82.7 64.9
Profit on disposal of
business 9.5 -
Financial income 9.0 6.6
Finance costs (15.6) (20.7)
Profit before tax 85.6 50.8
Tax (24.2) (15.6)
Profit after tax 61.4 35.2
Inter-segment pricing is on an arm's length basis. Segments are presented on the
basis of actual inter-segment charges made. Profit on disposal of business of
£9.5m (2005: £nil) relates to the Electronic Controls sector.
Segment assets Segment liabilities
2006 2005 2006 2005
£m £m £m £m
Process Technology 277.6 285.7 (94.3) (91.6)
In-line Instrumentation 156.4 150.3 (39.8) (35.1)
Electronic Controls 107.3 114.7 (26.2) (28.9)
Total segment assets and liabilities 541.3 550.7 (160.3) (155.6)
Cash and borrowings 51.0 77.1 (112.9) (181.0)
Derivative financial instruments 1.3 - (12.8) (24.7)
Net pension liability - - (18.8) (22.6)
Taxation (including amounts disclosed within 39.7 45.7 (34.4) (34.1)
assets and liabilities held for sale)
Consolidated total assets and liabilities 633.3 673.5 (339.2) (418.0)
Additions to Depreciation and Impairment
non-current assets amortisation charges
2006 2005 2006 2005 2006 2005
£m £m £m £m £m £m
Process Technology 8.4 42 7.7 6.2 - -
In-line Instrumentation 6.7 4.0 3.8 3.8 - 7.4
Electronic Controls 2.6 4.9 3.6 3.9 - -
17.7 13.1 15.1 13.9 - 7.4
Geographical segments
The group's business operations are each located in several geographical
locations, and sell on to external customers in all parts of the world.
The following is an analysis of revenue by geographical destination:
2006 2005
£m £m
UK 36.3 41.4
Continental Europe 253.5 240.1
North America 176.4 169.6
Japan 55.8 54.0
China 50.1 45.6
Rest of Asia Pacific 76.9 70.4
Rest of the world 35.5 34.8
684.5 655.9
The following is an analysis of the carrying amount of segment assets, and
additions to property, plant and equipment and intangible assets, analysed by
the geographical area in which the assets are located.
Carrying amount of Additions to
segment assets non-current assets
2006 2005 2006 2005
£m £m £m £m
UK 63.1 67.0 1.8 1.6
Continental Europe 355.6 359.4 5.9 8.4
North America 84.2 79.8 7.7 1.1
Japan 13.9 19.5 0.1 0.3
China 10.1 10.7 0.3 1.5
Rest of Asia Pacific 11.6 12.2 1.3 0.1
Rest of the world 2.8 2.1 0.6 0.1
541.3 550.7 17.7 13.1
4. FINANCE COSTS AND FINANCIAL INCOME
2006 2005
Financial income £m £m
Bank interest receivable 2.0 1.0
Dividend income - 0.1
Unrealised change in the fair value of cross-currency interest
rate swaps 2.8 -
Expected return on pension scheme assets 4.2 3.8
Other financial income - 1.7
9.0 6.6
2006 2005
Finance costs £m £m
Interest payable on bank loans and 0.5 0.9
overdrafts
Interest payable on other loans 10.6 12.8
Total interest payable 11.1 13.7
Unrealised change in fair value of cross-currency interest rate swaps - 1.1
Unrealised change in fair value of average rate options - 1.7
Interest cost on pension scheme liabilities 4.5 4.2
15.6 20.7
Interest costs of £9.1m (2005: £12.6m) for the purposes of the calculation of
interest cover comprise of bank interest receivable of £2.0m (2005: £1.0m),
dividend income of £nil (2005: £0.1m), and interest payable on bank and other
loans and overdrafts of £11.1m (2005: £13.7m).
5. TAXATION
UK Overseas 2006 UK Overseas 2005
Total Total
£m £m £m £m £m £m
Current tax charge 0.9 21.4 22.3 3.5 16.4 19.9
Adjustments in respect of
current tax of prior years (0.1) (0.5) (0.6) (1.3) (1.8) (3.1)
Deferred tax - origination and
reversal of temporary differences (0.3) 2.8 2.5 (1.7) 0.5 (1.2)
0.5 23.7 24.2 0.5 15.1 15.6
The standard rate of corporation tax for the year, based on the weighted average
of tax rates applied to the group's profits, is 32.1% (2005: 32.8%). The tax
charge for the year is lower than the standard rate of corporation tax for the
reasons set out in the following reconciliation:
2006 2005
£m £m
Profit before taxation 85.6 50.8
Corporation tax at standard rate of 32.1% (2005: 32.8%) 27.5 16.7
Non-taxable income and gains (1.7) (2.7)
Non-deductible expenditure 1.2 2.8
Movements on unrecognised deferred tax assets (0.6) (3.0)
Other current year items (0.1) (0.6)
Tax charge on dividends received from EU-based subsidiaries - 2.8
Taxation on other dividend flows - 3.6
Revision of recognition of opening deferred tax assets - (2.5)
Other adjustments to prior year current and deferred tax (2.1) (1.5)
charges
Total taxation 24.2 15.6
The following tax charges/(credits) relate to items of income and expense that
are excluded from the group's adjusted performance measures.
Tax on items of income and expense that are excluded from the 2006 2005
group's adjusted profit before tax £m £m
Tax charge/(credit) on unrealised change in fair value of
cross-currency interest rate swaps 0.8 (0.3)
Tax credit on unrealised change in fair value of average rate
options - (0.5)
Tax credit on amortisation of intangible assets and goodwill
impairment charge (0.6) (1.2)
Tax charge on disposal of subsidiary undertakings 3.2 -
Tax charge on other financial income - 0.5
Total tax charge/(credit) 3.4 (1.5)
Other tax items not forming part of the underlying tax rate 2006 2005
£m £m
Material transfers from unrecognised tax assets (1.2) (2.5)
Material changes in deferred tax rates - 0.5
Tax charge on dividends received from EU-based
subsidiaries - 2.8
Total tax (credit)/charge (1.2) 0.8
The tax charge on dividends received from EU-based subsidiaries is £nil (2005:
£2.8m). In December 2006 the European Court of Justice ruled in the group
litigation order test case that the UK's system of taxation for overseas
dividends is permissible under the EU treaty, subject to certain caveats and
conditions. The case was referred back to the UK courts to interpret the
decision and deliver a specific judgement for the claimants. Pending the
decision of the UK courts, a tax creditor of £12.6m continues to be held for the
potential tax liabilities arising in 2004 (£9.8m) and 2005 (£2.8m).
The effective adjusted tax rate for the period was 28.8% (2005: 26.9%) as set
out in the reconciliation below:
Reconciliation of total tax charge on adopted IFRS basis to adjusted tax charge 2006 2005
£m £m
Total tax charge on adopted IFRS basis 24.2 15.6
Tax (charge)/credit on items of income and expense that are excluded from the
group's adjusted profit before tax (3.4) 1.5
Other tax items not forming part of the underlying tax rate 1.2 (0.8)
Adjusted tax charge 22.0 16.3
Adjusted profit before tax 76.3 60.5
Adjusted effective tax rate 28.8% 26.9%
6. DIVIDENDS
2006 2005
Amounts recognised and paid as distributions to equity holders in the £m £m
year
Final dividend for the year ended 31 December 2005 of 11.2p
(2004: 10.25p) per share 14.0 12.4
Interim dividend for the year ended 31 December 2006 of 5.0p
(2005: 4.6p) per share 6.2 5.7
20.2 18.1
Amounts arising in respect of the year 2006 2005
£m £m
Interim dividend for the year ended 31 December 2006 of
5.0p (2005: 4.6p) 6.2 5.7
Proposed final dividend for the year ended 31 December 2006 of 12.5p
(2005: 11.2p) per share 15.6 14.0
21.8 19.7
The proposed final dividend is subject to approval by shareholders at the Annual
General Meeting and has not been included as a liability in these financial
statements.
7. EARNINGS PER SHARE
Basic earnings per share amounts are calculated by dividing net profit for the
year attributable to ordinary equity shareholders of the parent by the weighted
average number of ordinary shares outstanding during the year.
Diluted earnings per share amounts are calculated by dividing the net profit
attributable to ordinary shareholders by the weighted average number of ordinary
shares outstanding during the year but adjusted for the effects of dilutive
options.
Basic earnings per share 2006 2005
Profit after tax (£m) 61.4 35.2
Weighted average number of shares outstanding (millions) 124.3 122.1
Basic earnings per share (pence) 49.4 28.8
Diluted earnings per share 2006 2005
Profit after tax per income statement (£m) 61.4 35.2
Basic weighted average number of shares outstanding (millions) 124.3 122.1
Weighted average number of dilutive 5p ordinary shares under option
(millions) 1.6 1.5
Weighted average number of 5p ordinary shares that would have been
issued at average market value from proceeds of dilutive share options
(millions) (1.2) (1.2)
Diluted weighted average number of shares outstanding (millions) 124.7 122.4
Diluted earnings per share (pence) 49.2 28.8
8. COMPANY INFORMATION
The financial information set out above does not constitute the company's
statutory accounts for the years ended 31 December 2006 or 2005 but is derived
from those accounts. Statutory accounts for 2005 have been delivered to the
Registrar of Companies. The auditors have reported on those accounts; their
report was unqualified and did not contain statements under section 237(2) or
(3) of the Companies Act 1985. The statutory accounts for 2006 will be delivered
following the company's Annual General Meeting.
9. ANNUAL REPORT
Copies of the annual report, which will be posted to shareholders on 22 March
2007, may be obtained from the registered office at Station Road, Egham, Surrey
TW20 9NP. The report will also be available on the company's website at
www.spectris.com.
This information is provided by RNS
The company news service from the London Stock Exchange
Friday, 31st May 2024
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