25th Feb 2021 10:01
(Alliance News) - Spectris PLC on Thursday lifted its dividend for 2020 despite swinging to loss on additional expenses.
The Egham, England-based precision instrumentation and controls supplier said like-for-like sales declined 11% year-on-year to GBP1.34 billion in 2020, but fourth-quarter order intake has provided momentum coming into 2021.
Operating loss totalled GBP23.3 million for the year amid impairments at Millbrook, including a goodwill charge of GBP58.4 million and a GBP67.5 million charge of acquisition-related intangible assets and other property, plant and equipment.
The company swung to a pretax loss of GBP4.1 million from GBP259.3 million profit in 2019. Adjusted pretax profit fell by a third to GBP166.4 million from GBP247.4 million a year ago.
Despite that, the company increased its dividend by 5% for the full year to 68.4 pence, and announced a GBP200 million share buyback programme.
"2020 delivered challenges on many fronts as a result of Covid-19," said Chief Executive Andrew Heath.
"Cash generation was extremely strong and the balance sheet was further strengthened. This enabled us to reverse the temporary cost measures, returning staff to full pay, reinstating full-time working for the majority of employees and repaying the salary sacrifice," noted Heath.
Going forward, Spectris said the stronger order intake in the last three months of 2020 provides momentum for the first quarter of 2021, although it noted that much uncertainty remains and it expects "the immediate economic backdrop to remain challenging".
Spectris shares were trading 3.8% lower in London on Thursday at 2,980.00p each.
By Evelina Grecenko; [email protected]
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