Spectris H1 sales flat as US-China spat hits revenues

Precision instrument maker Spectris said first half revenues were flat as the US–China trade spat impacted on results.

Like for like sales for the six months to June 30 rose 1% to £759m as the company reported a £50.1m pre-tax loss compared with a £96.9m profit a year earlier.

Adjusted pretax profit, which excluded exceptional costs grew 4.2% to £77.2m. The interim dividend was increased by 6.8% to 21.9p a share.

North American like for likes sales fell 3%, while in Europe they were down 2%.

Spectris industrial controls division recorded a 7% decline in LFL sales, impacted by USA-China tariffs, slowing US industrial production and a temporary disruption to activity following the launch of a new digital platform.

Chief executive Andrew Heath said organic sales growth moderated against a tought 2018 comparator and reflected a “more challenging macroeconomic environment”, but said results were in line with expectations.

"Our expectations for the full year remain unchanged, while recognising that the current macroeconomic conditions make it more challenging," Heath added.