20th Feb 2020 08:57
(Alliance News) - Spectris PLC on Thursday said it will be paying a special dividend, thanks to an improved performance in 2019 amid its restructuring programme.
The measuring instruments and controls company reported pretax profit growth of 19% to GBP259.3 million in 2019 from GBP218.0 million, as revenue rose by 1.7% to GBP1.63 billion from GBP1.60 billion.
On an organic, constant currency like-for-like basis, revenue increased by 0.4%, Spectris said. The sales contribution from acquisitions were broadly offset by disposals, and there was a 1.5% positive impact from foreign currency exchange movements.
Spectris explained that its profit improvement programme delivered annualised benefits of GBP25.5 million, while restructuring costs totalled GBP52.2 million. The company said it will continue these improvement activities into 2020.
"The successful delivery of our profit improvement programme, combined with an increased emphasis on deploying the Spectris Business System, enabled us to deliver increased profit and operating margin expansion, against a weakening macroeconomic backdrop," said Chief Executive Andrew Heath.
The Egham-headquartered company declared an annual payout of 65.1 pence, up 6.7% from 61.0p paid a year earlier.
In addition, Spectris proposed a GBP175 million special dividend and share consolidation. A special dividend of 150p per share has been declared, and in order to maintain the comparability of the company's share price and per-share metrics before and after the special dividend, Spectris said it plans to undertake a supporting share consolidation, which will be subject to shareholder approval.
"2019 has been a year of delivery upon which to build in 2020," concluded Heath. "We are intent on further improving our operating margin, to at least previous highs, and enhancing capital returns, as we continue to work on asset optimisation and managing the portfolio."
Spectris shares were trading 5.1% higher in London on Thursday at 2,876.00 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
Spectris