Trading update
Updated : 07:01
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
Trading update
Spectris plc (SXS: LSE) ("Spectris" or the "Company"), the expert in providing insight through precision measurement, today provides an update on trading for the second quarter and outlook for the full year.
As announced in our first quarter trading update on 2 May, we successfully rolled out our new ERP system globally across Malvern Panalytical in April. While the implementation went well and the system is fully functioning, the anticipated disruption to operations, that is typically associated with projects of this type, has lasted longer than we originally expected. As a result, we expect around £15 million of sales and £10 million of operating profit to move into the second half with no impact on the full year as operations return to normal.
Additionally, in Malvern Panalytical, the combination of weaker demand in China, a significant reduction in battery development, associated with the slowdown in sales of electric vehicles, and continued, subdued trading in pharmaceuticals, is expected to reduce sales and operating profit by a further £15 million and £10 million respectively in the first half.
Trading across our other businesses is in line with our expectations.
As a result of our performance in the first half, and our revised expectations for the second half, we now expect adjusted operating profit to be at, or marginally below, the bottom end of the range of consensus analyst expectations[1] for the full year.
Our results for the first six months to the end of June 2024 will be published on Tuesday 30 July.
Conference call
A conference call for analysts and investors will be hosted by Andrew Heath, Chief Executive, and Derek Harding, Chief Financial Officer, at 08.00 BST today to discuss this statement.
To access the call, please dial +44 (0) 20 3936 2999 - Participant code: 404829. Or for replay, please dial +44 (0) 20 3936 3001 - Participant code: 752762.
For and on behalf of Spectris plc
LEI Number: 213800Z4CO2CZO3M3T10
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Contacts:
Spectris plc
Mathew Wootton
Investor Relations Director
+44 7500 078880
Teneo
Martin Robinson/Giles Kernick
+44 20 7353 4200
This Announcement contains inside information for the purposes of article 7 of the Market Abuse Regulation (EU) 596/2014 which is part of UK law by virtue of the European Union (withdrawal) Act 2018. The person responsible for arranging for the release of this Announcement on behalf of the Company is Rebecca Dunn, Company Secretary.
About Spectris
Spectris combines precision with purpose, delivering progress for a more sustainable world. We provide critical insights to our customers through premium precision measurement solutions combined with technical expertise and deep domain knowledge. Precision is at the heart of what we do - our leading, high-tech instruments and software equip our customers to solve some of their greatest challenges to make the world cleaner, healthier and more productive. We are focused on two key divisions - Spectris Scientific and Spectris Dynamics, which are placed in technology-driven end markets, with strong fundamentals and attractive growth trajectories. We have leading market positions in premium segments and employ 7,000 people located in more than 30 countries, all united behind our purpose to deliver value beyond measure for all our stakeholders. For more information, visit www.spectris.com.
[1] Company compiled analyst consensus range for adjusted operating profit for FY24 of £232 million to £259 million.
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