Interim Management Statement

RNS Number : 7328C

Spectris PLC

19 April 2013

 



                                                                           

 

Spectris plc: Interim Management Statement

Friday 19 April 2013 - Spectris plc (LSE: SXS), the productivity-enhancing instrumentation and controls company, issues its Interim Management Statement covering the period from 1 January to 18 April 2013. The below stated comparatives are from continuing business excluding Fusion UV.

TRADING UPDATE

On a reported and constant currency organic basis, sales for the three months ended 31 March 2013 declined by 8% and 9% respectively, delivering a slower than expected start to the year. The decline is due to a combination of the strong comparative prior year period and weaker customer confidence leading to deferral of orders and shipment delays.  

This weakness was experienced across all of our major regions, all reporting segments and the majority of our end markets.  Regionally, sales in Asia Pacific declined by 15% on a like-for-like basis, North America declined 10% and Europe declined 6% in the quarter compared with the first quarter of last year.

At this stage we have no reason to believe that any deferred orders will be cancelled and our opportunity pipeline remains strong and supportive of revenue growth for the full year, albeit at a more moderate rate than previously anticipated. Therefore, we have taken actions to reduce our cost base for 2013 by approximately £10 million which underpins our full year profit.

FINANCIAL POSITION

Beyond the disposal of Fusion UV, there was no significant event or transaction during this period which resulted in a material impact on the financial position of the group.

The company continues to maintain a healthy financial position. Net debt at 31 March 2013 was approximately £138 million, a reduction of around £116 million in the quarter reflecting the receipt of the gross proceeds from the sale of Fusion UV and continued strong operating cash flow.

OUTLOOK

Whilst we now expect top-line growth in 2013 to be slightly lower than previously anticipated, our strong opportunity pipeline and cost reduction initiatives leave us optimistic that we will deliver full year performance broadly in line with our expectations at the beginning of the year.

A conference call for analysts and investors will be held at 08.00 (UK time) today to discuss this statement.

Toll Number                            0203 139 4830   

Toll-Free Number                    0808 237 0030   

Participant PIN                        87221093#          

Playback Number                   020 3426 2807

Playback Toll Free No             0808 237 0026

Playback Pin Code                 637824#

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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 7,600 people, with offices in more than 30 countries.

For more information, visit www.spectris.com

Copies of this announcement are available from the Company's registered office at Heritage House, Church Road, Egham, Surrey TW20 9QD and on the Company's website at www.spectris.com

Contacts:

Spectris plc

John O'Higgins, Chief Executive	[phone]
Clive Watson, Group Finance Director	[phone]
Cléa Rosenfeld, Head of Corporate Affairs	[phone]
FTI Consulting
Richard Mountain	[phone]
Suzanne Yule	[phone]

 

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