30th Jul 2019 08:46
(Alliance News) - Spectris PLC on Tuesday boosted interim dividend despite moderating like-for-like sales growth in a tough market.
For the six months ended June, the FTSE 250-listed measuring devices maker sank to a GBP50.1 million pretax loss from a GBP96.9 million profit the year prior. This was despite revenue rising 4.3% to GBP759.1 million from GBP728.0 million the year before.
Profit performance was hurt by jump in restructuring costs to GBP29.1 million from GBP6.7 million the year prior. Similarly, GBP99.0 million in impairment related to acquisitions and the restructure also hurt profit performance.
Adjusted pretax profit - excluding exceptional costs - widened 4.2% to GBP77.2 million from GBP74.1 million the year prior.
"We have delivered results in line with expectations in the first half, despite the more challenging macroeconomic environment," Spectris Chief Executive Officer Andrew Heath said. "While our like-for-like sales growth moderated in the first half of 2019, profitability and cash conversion improved."
During the period, like-for-like sales growth fell to 1% from the 5% reported for the full year prior.
"Our expectations for the full year remain unchanged, while recognising that the current macroeconomic conditions make it more challenging," Heath added. "We will continue to focus on what we can control; implementing targeted growth initiatives, refocusing the portfolio and driving operating margin expansion, with increased benefits from our profit improvement programme coming through in the second half."
Spectris proposed a 21.9 pence per share interim dividend, up 6.8% from 20.5p the year prior.
"We have completed our strategic review and are clear on the opportunities and potential ahead of us," Heath said. "We are now focused on executing our strategy for profitable growth and creating significant value for our customers, shareholders and employees."
Shares in Spectris were 2.9% lower at 2,668.00 pence in London on Tuesday.
Related Shares:
Spectris