30th Apr 2025 14:09
(Alliance News) - Spectris PLC on Wednesday reported a decline in its sales during the first quarter, but expects "strong progress" for 2025.
Spectris is a London-based provider of high-tech instruments, test equipment and software.
In the three months that ended March 31, sales were GBP299.0 million, down 3.4% from GBP309.4 million a year before. The decrease was partly due to the company selling Red Lion Controls to HMS Networks for USD345 million in April 2024. Without that sale, sales at constant currency rose by 5%.
Spectris successfully incorporated Micromeritics and SciAps into its operations in August 2024, it said and these acquisitions are expected to be significant drivers of profit growth in 2025.
As well as this, Spectris's Profit Improvement Programme is expected to deliver around GBP30 million worth of savings in 2025, weighted to the second half. Around GBP50 million of run-rate cost savings are expected to be delivered in 2026 the company said.
Excluding acquisitions, like-for-like sales were down 8% in the first quarter on a year before.
This fall in like-for-like sales growth was due to weakness in automotive, semiconductor and materials.
All regions saw a year-on-year decrease, with Asia falling by 7%, Europe by 6% and North America by 10%. The Rest of the World saw the largest drop at 15%.
Looking ahead, Spectris said it had a strong order book at the end of the first quarter at GBP529 million, up 4% on a constant currency basis compared to the end of December.
The company expects to deliver "strong growth" in adjusted operating profit in 2025, in line with market expectations.
Despite the uncertain macroeconomic environment, Spectris expects to be able to offset the direct impacts of the US trade tariffs, adding that "while it is too early to determine the indirect effect of tariffs, we are well prepared to take action to mitigate against any impact".
Chief Executive Andrew Heath said: "The combination of our 'profit improvement programme' and contribution from acquisitions completed in 2024 will provide over GBP60 million of incremental profit contribution in 2025. With our leading positions in attractive growth markets, Spectris is well placed to benefit strongly when markets recover."
Spectris shares fell 1.3% to 1,976.00 pence in London on Wednesday afternoon.
By Olivia Mason-Myhill, Alliance News reporter
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