31st Oct 2023 11:07
(Alliance News) - Spectris PLC on Tuesday said it expects its full year profit to be at the top end of expectations despite reporting a slowdown in sales growth in its third quarter.
The London-based supplier of high-tech instruments, test equipment and software for industrial applications said sales in the three-month period ended September 30 grew 5.0% to GBP349.2 million from GBP332.6 million a year prior. Reported sales growth in the corresponding quarter a year ago was 13%.
Meanwhile, like-for-like sales grew by 11%, with the most growth recorded in Europe at 12%. Year-to-date LFL sales grew by 16%.
On a divisional level, Spectris Scientific produced LFL growth of 12%, and the company cited normalised customer order intake across life sciences and pharmaceuticals and semi-conductor end markets. Spectris Dynamics LFL sales grew by 8% due to an increase in order intake. 'Other' produced the highest growth at 15%.
Spectris added that "demand has now broadly normalised with out backlog and lead times returning to more typical levels."
As a result, the company said as a result of strong progress on margins, its full year adjusted operating profit expectations are at the upper half of its guidance range of GBP250 million to GBP265 million. Spectris also said it expects "another year of progress" in 2024, and forecasts further margin expansion.
Chief Executive Officer Andrew Heath said: "Our performance in the third quarter provides further evidence of the improved quality and strength of the Group and represents another step towards the delivery of our medium-term targets. Our balance sheet provides us with flexibility for continued investment in growth as evidenced by the acquisitions completed during the period.
"While remaining alive to the broader macro-economic environment, the Group's resilience, demonstrated by our order momentum, leading product portfolio and broad end market exposure, combined with a strong self-help story, gives me confidence in delivering our guidance for this year and another year of progress in 2024."
Spectris shares rose 4.1% to 3,128.00 pence each on Tuesday morning in London.
By Sabrina Penty, Alliance News reporter
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