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Spectris says Q2 performance was better-than-expected

“Whilst the backdrop has altered, it has provided new opportunities to emerge from this crisis stronger and more resilient,” said Andrew Heath.

Spectris PLC - Spectris says Q2 performance was better-than-expected

Spectris PLC (LON:SXS) flagged a better than expected performance in the second quarter, albeit on a like for like basis first-half sales decreased by 14% to £599mln.

It highlighted that the company’s focus on cost control continues, via a profit improvement programme and short-term, temporary cost-cutting measures. Adjusted operating profit was down 41% to £44.1mln.

Profit after tax totalled £40.4mln for the first half, down 47.7% versus the same period in 2019.

READ: Spectris manufacturing back to full capacity

The company highlighted strong cash flow generation with £94.3mln at the end of June.

Significantly, the company reinstated its dividend and is to pay an additional dividend in lieu of the 2019 final dividend – with 43.2p per share slated for payment in October, and 21.9p per share to be paid in November.

Spectris reported a statutory operating loss of £56.2mln, including a non-cash impairment charge of £58.4mln.

“Whilst the backdrop has altered, it has provided new opportunities to emerge from this crisis stronger and more resilient,” said Andrew Heath, Spectris chief executive.

“We will continue to focus on what we can control - investing in our business to deliver growth, implementing costs initiatives to drive operating margin expansion and optimising the portfolio to deliver long-term value to our shareholders.

“Our strong balance sheet and cash generative business will allow us to execute our strategy to build high-performing platform businesses of scale."

Spectris shares fell 4% changing hands at 2,537.51p.

Quick facts: Spectris PLC

Price: 2404 GBX

LSE:SXS
Market: LSE
Market Cap: £2.79 billion
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