19th Nov 2019 09:24
(Alliance News) - Measuring devices maker Spectris PLC said Tuesday sales were flat in the first four months of the second half of 2019, despite a tough comparison provided by the year prior and a demanding market.
For the four months ended October, like-for-like sales were flat on the year prior. This was after its Malvern Panalytical unit delivered 4% like-for-like growth and HBK another 1%, offset by a 7% sales decline at Omega and 2% fall within the Industrial Solutions segment.
For the first ten months of 2019, however, like-for-like sales were 1% higher on the year before.
"Our LFL sales were flat in the period, up 1% in the year to date, against a tough comparator last year and the slowdown in the macroeconomic environment," Chief Executive Officer Andrew Heath said. "We have the usual second-half weighting and significant fourth quarter to deliver. We remain on track to meet our expectations, subject to end markets not deteriorating further, as we continue to focus on what we can control."
"We are executing on our strategy and the agreement to sell BTG represents the next step in delivering a more focused business, while representing compelling value for shareholders and further strengthening our balance sheet," Heath added.
In September, Spectris agreed to sell BTG Group for GBP283 million to Voith GmbH & Co KGaA. BTG forms part of the Industrial Solutions unit.
"Although near-term trading conditions are more demanding, the long-term fundamentals of our markets and businesses' resilience remain attractive, and we continue to focus on delivering our strategy for profitable growth, improving the operational performance of the Group and establishing a more focused organisation", Heath continued.
The FTSE 250-listed firm added that the 2019 benefits from its profit improvement programme were now expected to be at the "upper end" of the GBP15 million to GBP20 million range given. In 2020, this is expected to increase to GBP30 million.
Costs to enact the improvement programme are still expected to be GBP45 million in 2020.
Shares in Egham-based Spectris were 4.4% higher at 2,712.00 pence in London on Tuesday.
By Ahren Lester; [email protected]
Copyright 2019 Alliance News Limited. All Rights Reserved.
Related Shares:
Spectris