25th Jul 2014 07:39
LONDON (Alliance News) - Spectris PLC saw its shares drop to the bottom of the FTSE 250 Friday morning after the company reported a drop in pretax profit and revenue in its first-half after a weaker-than-expected performance by its divisions in its Material Analysis sector and lower shipments in the second quarter.
Spectris shares dropped at the open, trading 3.58% lower at 2,020 pence per share.
In its half-year results for the six months to June 30, 2014, the instrumentation and controls company said revenue declined 5% to GBP539.8 million from GBP566.2 million in the first-half last year. Pretax profit dropped 10% to GBP67.3 million from GBP75.0 million last year.
Operating profit declined 12% to GBP70.1 million, down from GBP80.1 million in the comparable period.
Despite the fall in its metrics, the company has increased its dividend by 8% to 16.0 pence from the 14.75 pence paid last year, in line with its progressive dividend policy, said Spectris.
The company said that a weaker-than-expected performance in the metals, minerals, mining and academic research sectors resulted in a fall in like-for-like sales of 5% in Spectris' Materials Analysis segment. Like-for-like sales were also impacted by weaker shipments in its secon-half, it said. d
Spectris generates most of its revenues outside the UK, therefore the strength of sterling also hit operating profit and revenue.
"In the first half, we saw a solid contribution from three of our four segments. However, this was impacted by weaker than expected performance during the second quarter. The second half will benefit from investments incurred in the first half for new product launches, regional growth initiatives and recent acquisitions. The businesses are strategically well positioned and the Board of Spectris believes that it will deliver second half performance in line with expectations," CEO Executive John O'Higgins said.
The controls and instrumentation company acquired Canada-based La Corporation Scientifique Claisse Inc for an undisclosed amount in June in order to enhance Spectris' presence within the sample preparation market.
By Alice Attwood; [email protected]; @AliceAtAlliance
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