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Spectris PLC on Tuesday said it expects its full year profit to be at the top end of expectations despite reporting a slowdown in sales growth in its third quarter.
The London-based supplier of high-tech instruments, test equipment and software for industrial applications said sales in the three-month period ended September 30 grew 5.0% to £349.2 million from £332.6 million a year prior. Reported sales growth in the corresponding quarter a year ago was 13%.
Meanwhile, like-for-like sales grew by 11%, with the most growth recorded in Europe at 12%. Year-to-date LFL sales grew by 16%.
On a divisional level, Spectris Scientific produced LFL growth of 12%, and the company cited normalised customer order intake across life sciences and pharmaceuticals and semi-conductor end markets. Spectris Dynamics LFL sales grew by 8% due to an increase in order intake. ’Other’ produced the highest growth at 15%.
Spectris added that ‘demand has now broadly normalised with out backlog and lead times returning to more typical levels.’
As a result, the company said as a result of strong progress on margins, its full year adjusted operating profit expectations are at the upper half of its guidance range of £250 million to £265 million. Spectris also said it expects ‘another year of progress’ in 2024, and forecasts further margin expansion.
Chief Executive Officer Andrew Heath said: ‘Our performance in the third quarter provides further evidence of the improved quality and strength of the Group and represents another step towards the delivery of our medium-term targets. Our balance sheet provides us with flexibility for continued investment in growth as evidenced by the acquisitions completed during the period.
‘While remaining alive to the broader macro-economic environment, the Group’s resilience, demonstrated by our order momentum, leading product portfolio and broad end market exposure, combined with a strong self-help story, gives me confidence in delivering our guidance for this year and another year of progress in 2024.’
Spectris shares rose 4.1% to 3,128.00 pence each on Tuesday morning in London.
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