Spectris sees FY adj. op. profit in line with views

Spectris said trading conditions in the period July 1 to Oct. 31 have marginally deteriorated, particularly in North America, and that its performance continues to be impacted by weak industrial demand.

"However, this is offset by further strategic progress on acquisitions and by the impact of foreign currency exchange movements," said CEO John O'Higgins in a statement.

"Accordingly, we expect the full year adjusted operating profit to be in line with current market expectations."

Reported sales increased by 18% in the four months to end October. Acquisitions contributed 4% points of sales growth, foreign currency exchange movements positively impacted revenues by 18% points, whilst Group like-for-like ('LFL') sales declined by 4%. For the ten-month period 1 January to 31 October, LFL sales also declined by 4%.

Regionally, LFL sales grew in Asia Pacific and the Rest of the World, and declined in Europe and North America. The performance in Europe has improved moderately since the first half of the year while in contrast, North America saw a further deterioration.

Materials Analysis delivered positive LFL sales growth in the period, whilst LFL sales declined in the other three segments. At Omega Engineering, the adverse P&L impact from inventory adjustments, referred to at the half-year results, has been quantified and ongoing process improvements continue to be implemented to remedy this.

Against this trading environment, the Group continues its self-help actions to better align costs to sales performance and is on track to deliver £10 million costs savings for the full year.

"We are making good progress in quantifying and planning the various productivity improvement initiatives included in Project Uplift, the group-wide efficiency programme announced at the half year. We will provide an update on the expected benefits, cost of implementation and timing at our 2016 final results announcement in February 2017."