Exova Group expects full year earnings to be in line with previous guidance, despite more challenging conditions since the half-year.
It now expects full year constant currency organic sales to be broadly flat.
For 2017, it continues to anticipate modest organic revenue growth supplemented by acquisitions, albeit with a less favourable business mix due to continuing pressures in Oil & Gas and the expected reduction in volumes in engine-testing.
Group performance for the 10 months to 31 October:
- Total revenue up 10.8% at actual rates; +3.7% at constant currency
* (0.2)% organic growth at constant currency (+5.7% excluding Oil, Gas & Industrials)
* 7.4% growth from acquisitions, 3.9% net of disposals
* Foreign exchange tailwind of 7.1% arising from our global footprint
- Despite a lower second half organic growth rate, continued good performance in Aerospace, Infrastructure & Environment, and Fire, Building Products & Certification (FBP&C)
- M&A pipeline continues to be strong and recent acquisitions performing well
Chief executive Ian El-Mokadem said: "The group has made satisfactory progress in the first ten months of 2016. We continue to generate good organic growth outside of our Oil, Gas & Industrials sector, and our acquisitions programme continues to deliver. While we have taken some additional cost actions to mitigate the impact of the continued softness in Oil & Gas, we remain mindful of retaining our technical capabilities so that we are well positioned to benefit from a market recovery."
At 9:25am: (LON:EXO) Exova Group Plc share price was -4.87p at 190.13p