Spectris April sales hit by Covid-19 lockdowns

The company on Friday said North America and the academic research and automotive end markets, had taken the brunt of the hit as lockdowns globally took effect.

Group like-for-like sales fell 12% in the four months to April 30. Disposals reduced sales by 9%, partly offset by a 1% favourable foreign currency exchange movement, resulting in a 20% decrease in reported sales, Spectris said.

“From an end market perspective, like-for-like sales in the period were down more sharply in metals, minerals and mining where investments are being put on hold as demand for metals-based products declines, and academic research, as universities and research institutes closed their doors,” the company said in a trading update.

“Machine manufacturing was the only end market to see growth in the period, with good onward demand from process, food and medical markets.”

Spectris said Asian like-for-like sales fell 20%, driven by China, although the country rebounded strongly in April as pent up demand translated to revenue.

In Europe and North America sales for the four-month period were 13% and 6% lower, respectively, reflecting the later phasing of the start of the lockdowns in those regions, it added.

The group continued to be highly cash generative, with a cash conversion of more than 150% for the period. At the end of April, Spectris had net cash of £59.9m compared with £33.5m the end of 2019, with a cash balance of £244.2m and gross borrowings of £184.3m.

“The group has £827.5m of committed banking facilities and has access to a number of uncommitted and bank overdraft facilities,” Spectris said.