22nd May 2020 10:39
(Alliance News) -Â Spectris PLC on Friday reported a slump in sales for the first four months of 2020 due to Covid-19, though noted demand from China has started to rebound.
Shares in Spectris were down 6.6% at 2,512.00 pence in London on Friday.
For the four months to April 30, like-for-like sales were down 12%. The fall was led by Asia, seeing a 20% slump, while sales were down 13% in Europe and 6% in North America - though the company noted that Chinese sales rebounded strongly in April as pent up demand translated into extra revenue.
Disposals reduced sales by 9%, the measuring instruments and controls company said, partly offset by a 1% boost from currency movements, resulting in a 20% fall in reported sales.
After a 9% decline in the first quarter, April's performance was in line with revised expectations with like-for-like sales sinking 21%.
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, and in academic research, as universities and research institutes closed their doors.
Visibility for the future remains low, Spectris said, reinforcing its decision to withdraw its 2020 guidance in April.
"We entered this crisis with net cash on the balance sheet and good liquidity. Since then, we have continued to generate cash and take further cost actions. We are taking a balanced approach, implementing mitigation actions while acting in accordance with our values, as the way to deliver our long-term financial health and sustainability; thereby ensuring we emerge from this crisis a stronger and even more resilient business," said Chief Executive Andrew Heath.
By Lucy Heming;Â [email protected]
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