16th Feb 2016 07:46
LONDON (Alliance News) - Precision instrumentation and controls supplier Spectris PLC on Tuesday said restructuring costs and higher spending pushed its profit lower in 2015, exacerbating the mixed trading conditions in its markets as it was hit by a slowdown in the US manufacturing industry.
The FTSE 250-listed company, which makes materials analysis and testing and measurement systems used by industrial and manufacturing industry customers, said its pretax profit dipped to GBP141.6 million in the year, down 17% from the GBP171.1 million it made a year earlier.
Revenue rose to GBP1.19 billion from GBP1.17 billion, but this was wiped out at the profit line by increased research and development spending and restructuring costs as the group looked to reduce expenses.
Sales in Europe and Asia rose in the year, but sales to North America and the Rest of the World divisions for the group were lower, the latter particularly hit by a sharp decline in Russia. Materials Analysis sales were higher, Spectris said, while Test & Measurement and In-Line Instrumentation sales were flat, but sales in its Industrial Controls unit dropped due to a broad-based weakening of the North American manufacturing sector.
Spectris said it will pay a final dividend of 32.2 pence per share, taking its total dividend to 49.5p, up 6.0% year-on-year.
Spectris said it expects an improvement in performance in 2016 as the benefits of its restructuring programme, which is on track, flow through, following a year hit by mixed conditions across its markets and divisions.
"New product launches and acquisitions are expected to continue to play an important role in the group's development and these investments, together with our broad end-market exposures and strong financial position, provide the board of Spectris with confidence that the company is well positioned for 2016 and beyond," said Chief Executive John O'Higgins.
By Sam Unsted; [email protected]; @SamUAtAlliance
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