Spectris PLC (LSE:SXS) said demand remains strong for its precision measurement technology, with like-for-like growth of 10% in the third quarter and for the year to date.
The FTSE 250-listed group maintained its full-year guidance for “high single digit” like-for-like sales and adjusted operating profit remains in line with current market expectations, with analyst forecasts in a range from £206mln to £225mln, compared to £209.4mln last year.
Continuing supply chain difficulties and ongoing cost inflation were said to be slowing the recovery in gross margin.
Orders were 0.5% higher, with the expected slowdown in growth given the strong year-on-year comparator.
“Orders remain ahead of revenue, even when compared to our strong performance in the third quarter last year, supported by our continued focus on R&D investment and new product introductions,” said chief executive Andrew Heath.
Net cash stood at £222mln at the end of September, with the May acquisition of accelerometer specialist Dytran Instruments completed and proceeds received from the divestment of Omega in July.
A capital markets day (CMD) later today will provide more detail about its strategy for sustainable growth, including new medium-term targets.
“We will demonstrate our confidence of compounding growth into the future, supported by organic investments and M&A, while continuing to expand operating margins,” said Heath.
The shares were little moved after an hour's trading on Wednesday at 2,895p, down 21% in the year to date and up 8% since the last CMD in June 2019.