4th Aug 2020 10:36
(Alliance News) - Spectris PLC on Tuesday posted a widened loss for the second half of 2020, but said sales in the second quarter were better than expected.
Shares in the FTSE 250-listed measuring instruments and controls company were trading 4.0% lower at 2,538.00 pence each on Tuesday morning in London.
Spectris said its pretax loss for the six months ended June 30 was GBP65.5 million, widened from GBP50.1 million recorded the year prior. This was after revenue fell 26% year-on-year to GBP599.0 million from GBP759.1 million.
The Surrey-based company said like-for-like sales declined less than expected during the second quarter, with sales in May down 20%, similar to the 21% decline in April, and June sales 12% lower than last year.
In the six months, it incurred a non-cash impairment charge of GBP58.4 million relating to goodwill and GBP20.8 million relating to acquisition-related intangible assets.
In April, Spectris said it was postponing the payment of the final 2019 dividend. But on Tuesday, an interim dividend of 21.9p was declared and the company added it will pay an additional 43.2p in lieu of the deferred 2019 final dividend.
Looking ahead, Chief Executive Andrew Heath said: "While the performance in the second quarter was better than we anticipated, it has been a demanding period for us, and many of our customers, and the outlook remains uncertain.
"It is now evident that we are facing an extended recovery period and therefore, we must move to implement sustainable cost actions in the face of a new economic reality. Whilst the backdrop has altered, it has provided new opportunities to emerge from this crisis stronger and more resilient."
Cash held as at June end was GBP287.0 million.
By Ife Taiwo; [email protected]
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