Spectris warns of moderating sales growth in 2019; Adjusted profits rise

Instrumentation maker Spectris said full year pre-tax profits fell 22% to £218m as it warned of moderating sales growth in 2019.

Adjusted pre-tax profits rose to £241.4m from £234.2m, while earnings per share fell to 157.6p from 197p last year. Adjusted operating profit was up to £248.3m from £239.3m a year earlier

Sales increased 5% to £1.6bn, boosted by a “supportive macroeconomic environment in a number of geographies and a strong demand backdrop in many of our key end markets” the company said.

A final dividend of 40.5p was declared for a total of 61p, an increase of 8%.

Chief executive Andrew Heath said he expected sales growth to moderate in 2019 “given the more cautious macroeconomic outlook”.

“Consequently, we are focusing on what we can control; increasing productivity and operational efficiency, while driving sales."

Spectris added that its profit improvement program was expected to deliver annualised benefits of more than £30m, of which £15 - £20m was expected to be realised during 2019.