Spectris PLC
LSE:SXS

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Spectris PLC
LSE:SXS
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Price: 4 142 GBX
Market Cap: 4.1B GBX

Spectris PLC
Investor Relations

Spectris PLC, a stalwart in the realm of precision instrumentation and controls, operates through a rich tapestry of companies that specialize in the heart of innovative technology. Originating from its robust heritage, Spectris designs and manufactures technologies that span across sectors such as pharmaceuticals, aerospace, electronics, and automotive, to name a few. With a keen eye on precision, the company's focus is on helping industries reduce waste, enhance quality, and improve efficiency. This keenly positions Spectris as a silent enabler of industrial prowess, working behind the scenes to ensure that products and services meet the highest standards of excellence. Their diverse portfolio allows them to cater to both niche markets and broad-scale operations, making them indispensable partners to their clients.

The financial heartbeat of Spectris lies in its ability to offer high-value solutions and services that address fundamental operational challenges. Customers rely on Spectris for their finely tuned instruments and control systems to measure parameters such as temperature, vibration, and emissions, transforming raw data into actionable insights. This data-centric approach underpins the company's revenue model, with clients investing in both the purchase of cutting-edge equipment and in long-term service agreements. By offering customizable solutions that optimize processes, Spectris not only helps its clients achieve regulatory compliance and operational efficiency but also contributes to their sustainability goals. This business model fosters strong, recurring revenue streams as clients seek to maintain the performance and reliability of the Spectris instruments that underpin their operational integrity.

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Last Earnings Call
Fiscal Period
Q2 2022
Call Date
Aug 1, 2022
AI Summary
Q2 2022

Strong Growth: Spectris reported continued strong demand with like-for-like sales up 11% and orders up 20%, supported by robust performance across all end markets.

Margins Stable, Expansion Expected: The adjusted operating margin was maintained at 12.7% for the first half, with management confident of margin expansion in the second half as price increases flow through.

High R&D Investment: R&D spending increased 18% year-on-year, now at 8.3% of sales, as the company focuses on innovation and market share gains.

Cash Conversion Temporarily Down: Cash conversion dropped to 39% due to higher inventory and capital expenditure, but is expected to recover to normal levels (80–90%) in H2.

Guidance Reiterated: Management reaffirmed its outlook for high single-digit organic sales growth and margin expansion for the full year.

Strong Order Book: No signs of order cancellations or delays; order book and customer demand remain robust, giving high confidence in the outlook.

Sustained Pricing Power: Pricing actions are sticking, with 4–5% price increases set to benefit H2 and expected to offset input cost inflation for the full year.

Key Financials
Sales
£570.2 million
Like-for-like Sales Growth
11%
Orders Growth (Like-for-like)
20%
Adjusted Operating Profit
£72.3 million
Adjusted Operating Margin
12.7%
Adjusted Profit Before Tax
£70.3 million
Adjusted Earnings Per Share
49.8p
Interim Dividend Per Share
24.1p
Adjusted Cash Conversion
39%
Net Debt
£98.3 million
Return on Gross Capital Employed
13.8%
R&D Spend
£47.6 million
R&D Spend as % of Sales
8.3%
CapEx
£31.6 million (H1)
Tax Rate
22%
Earnings Call Recording
Other Earnings Calls
2022
2020
2018

Management

Mr. Andrew Heath
CEO & Executive Director
No Bio Available
Ms. Kjersti Wiklund MA, MSc
Independent Non-Executive Director & Workforce Engagement Director
No Bio Available
Mr. Derek Harding
President of Spectris Scientific Division & Executive Director
No Bio Available
Ms. Angela Noon O.B.E.
CFO & Executive Director
No Bio Available
Ms. Judith Wettach
Head of Corporate Development
No Bio Available
Mr. Andrew Harvey
Group Human Resources Director
No Bio Available
Mr. Ben Bryson
President of Dynamics
No Bio Available
Ms. Rebecca Louise Dunn
Head of Corporate Affairs & Company Secretary
No Bio Available
Crister Dalen
Assistant Company Secretary
No Bio Available

Contacts

Address
SURREY
London
5th Floor Melbourne House, 44-46 Aldwych
Contacts