LONDON (ShareCast) - (Sharecast News) - Precision instrumentation supplier Spectris said on Thursday that second-quarter momentum and strategic cost savings had helped offset a slower start to the year due to the macroeconomic uncertainty caused by shifting US tariff policy.
Adjusted operating profits rose 7% to £65.6m, while statutory operating profit edged up 3% to £24.8m. Sales climbed 8% to £636.1m, though like-for-like growth was just 1%, reflecting softness in early trading.

Basic earnings per share fell 20% to 38.4p, while statutory EPS dropped 97% to 5.3p, impacted by prior-year gains. Operating margins dipped by 10 basis points to 10.3%, while statutory margins fell 20 basis points to 3.9%.

Net debt increased to £546m, but Spectris said it expects its leverage to return to its 1-2x target range by the end of the year. Cash generated from operations jumped 32% to £75.9m, with adjusted cash flow conversion improving to 126% from 111%. Spectris also noted it had realised over £10m in savings during H1 and expects more than £30m for the FY.

Looking ahead, Spectris said it remained confident in meeting FY expectations, supported by recent acquisitions and its ongoing Profit Improvement Programme.

Earlier in the week, the takeover battle for Spectris took another twist after it accepted an increased offer from KKR, valuing it at £4.2bn, trumping rival private equity firm Advent. KKR is now offering £41.75 per Spectris Share, made up of £41.47 in cash and an interim dividend of 28p each.

As of 0830 BST, Spectris shares were down 0.15% at 4,128p.



Reporting by Iain Gilbert at Sharecast.com

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE