www.spectris.com
Spectris plc is engaged in the development and marketing of precision instrumentation and controls. It operates in four segments.
Spectris sees better-than-expected FY2010 as demand improves in H1
FTSE250 instrument and controls company Spectris (LON:SXS) told investors that further to the last trading statement in May, it is continuing to see an improvement in demand over the prior year, with signs of recovery throughout most regions and end markets.
The company now expects to report 8% sales growth - on a organic like-for-like basis - for the first six months of the 2010 financial year.
“The first six months of 2010 have been encouraging ... we expect to continue to make good progress and deliver results for the full year ahead of the board's earlier expectations,” Spectris said.
Investors on the London Stock Exchange embraced the upbeat statement, with shares advancing 7.7% to trade at 898p midmorning. Earlier today the stock reached an intraday high of 949p.
On a reported basis the company expects full-year revenues to increase by approximately 9%, and adjusted operating profit is expected to be in the region of £50m (FY09: £20m), based on adjusted operating margins of approximately 12.3%.
“All four segments will show like-for-like revenue growth in the first half. We continue to see a faster recovery in the In-line Instrumentation and Industrial Controls segments than in Test & Measurement and Materials Analysis.”
“On a regional basis, Asia Pacific continues to lead the growth with sales expected to be up by 23% on a constant currency basis. In North America, sales will be up by 14%, while European sales will see a 3% decline.”
The company noted that its cash conversion was very good, and its financial position remains strong.
