Spectris reports flat LFL sales amid deteriorating markets

Spectris on Tuesday said its like-for-like sales for the four months ended 31 October remained flat due to tough comparatives from the year before and automotive difficulties.

The FTSE 250 company said overall sales increased by 4% over the period, benefiting from the impact of acquisitions and foreign currency movements.

Like-for-like sales and reported sales were up 1% and 4% respectively in the 10 months ended 31 October.

The instrumentation and controls company attributed the growth to better revenues from academic research customers as well the aerospace, pharmaceutical, machine manufacturing and energy end markets.

This helped to offset difficulties in the automotive end market for the HBK business and the impact of US-China tariffs and slowing US industrial production on the Omega subsidiary.

Meanwhile, benefits from Spectris' profit improvement programme are expected to be at the upper end of the £15-20m range for the current year, while a further £30m is forecast to be delivered in 2020.

Chief executive Andrew Heath said: "We have the usual second half weighting and significant fourth quarter to deliver. We remain on track to meet our expectations, subject to end markets not deteriorating further, as we continue to focus on what we can control."

Analysts from Shore Capital said: "Despite short-term headwinds, we think Spectris is well positioned to benefit in the long-term from the development of products and services in fast growing markets, such as electronics and technology-led industries."

At 1020 GMT, the shares were up 4.6% at 2,717p.