Spectris revenues climb despite pressure from US-China trade spat

Spectris said on Friday that trading for the first four months of 2019 was in line with expectations despite macroeconomic and geopolitical uncertainties, with growth driven by demand from the energy and metals, minerals and mining industries.

The instrumentation and controls company said that like-for-like sales increased by 3% during the period. Growth from acquisitions, net of disposals, contributed a further 1% and foreign currency exchange movements increased sales by 2%, resulting in a 6% increase in total reported sales in the period ended 30 April.

The FTSE 250 company said it continues to be highly cash generative, with a conversion of over 100% for the period, with net debt standing at £265m by the end of the period, down £32m since the year end after including capex of £28m.

With growth primarily driven by demand from the energy and metals, minerals and mining industries, as well as sales into academic research and semiconductor customers, the in-line instrumentation and materials analysis were the best performing segments. This more than offset lower sales from the test and measurement and industrial controls divisions.

Sales in Asia were particularly strong but US-China tariffs and slowing US industrial production led to lower sales in North America.

For the full-year, Spectris said it remains on track to deliver the expected £15-20m of profit improvements as its overall performance remains consistent with expectations. The overall performance is expected to be weighted towards the second half of the year.

Spectris shares were up 0.40% at 2,502.00p at 0804 BST.