Spectris plc – 2024 full year results
28 February 2025 – Spectris plc (SXS: LSE), the expert in providing insight through precision measurement, announces full year results for the year ended 31 December 2024.
Andrew Heath, CEO, said:
“We ended the year strongly, with full year profit slightly ahead of our revised guidance, and I would like to thank all of my Spectris colleagues for delivering such a robust finish to the year. While it is too early to state that we are seeing a sustained recovery in end markets, we are encouraged by the positive demand signals observed in the final quarter, with strong momentum demonstrated by order intake growth of 6% on LFL basis.
We take confidence from the quality of our portfolio, which has been significantly strengthened by three highly synergistic acquisitions. Their contribution, alongside our accelerated value-realisation plan, in the form of our Profit Improvement Programme, will underpin a significant increase in profit in 2025 and 2026. While the pace of end market recovery remains unclear, the decisive actions we have taken on cost and our focused portfolio, mean we entered 2025 with good momentum, underpinning progress towards our medium-term financial targets.
In 2025, building on the actions we took in 2024, we expect the Group to trade in line with market expectations returning to strong levels of growth in adjusted operating profit.”
Year of strong strategic execution against the backdrop of softer end markets
· Sales 7% lower in 2024 on a LFL basis, reflecting weakness across multiple end markets
· Reduction in adjusted operating margin to 15.6% as a result of operating leverage on lower sales
· Returning to growth – signs of end market demand recovery with LFL order growth of 6% in fourth quarter
· R&D delivering a record number of new products and product vitality up 7 percentage points at 29%
· Operational excellence - new ERP system and the Spectris Business System delivering tangible benefits
· Profit Improvement Programme to deliver £50 million of benefits over the next two years
· Three high-quality, complementary businesses acquired in 2024 delivering material synergies
· Focus on cash generation and leverage reduction in 2025
|
Adjusted1 2024 |
Adjusted1 2023 |
LFL change1 |
Statutory 2024 |
Statutory 2023 |
Statutory change |
|
|
Sales (£m) |
1,298.7 |
1,449.2 |
(7%) |
1,298.7 |
1,449.2 |
(10%) |
|
Operating profit (£m) |
202.6 |
262.5 |
(20%) |
97.6 |
188.6 |
(48%) |
|
Operating margin (%) |
15.6% |
18.1% |
(250bps) |
7.5% |
13.0% |
(550bps) |
|
Profit before tax (£m) |
191.5 |
263.6 |
|
302.7 |
185.6 |
63% |
|
Basic earnings per share (pence) |
148.1p |
199.7p |
|
233.1p |
140.3p |
66% |
|
Cash generated from operations |
|
|
|
138.5 |
245.5 |
(44%) |
|
Adjusted cash flow conversion (%) |
88% |
103% |
|
|
|
|
|
Return on gross capital employed (%) |
11.6% |
18.5% |
|
|
|
|
|
Dividend per share (pence) |
|
|
|
83.2p |
79.2p |
5% |
|
|
|
|
|
|
|
|
1. Alternative performance measures (APMs) are used consistently throughout this press release and are referred to as ‘adjusted’ or ‘like-for-like’ (LFL). These are defined in full and reconciled to the reported statutory measures in the Appendix to the Consolidated Financial Statements.
Contacts:
Spectris plc
Andrew Heath, Chief Executive Officer
Angela Noon, Chief Financial Officer
Mathew Wootton, Director of Investor Relations
Teneo
Martin Robinson / Giles Kernick
+44 20 7353 4200
Analyst meeting and live webcast
A presentation to analysts and investors will take place at Bank of America, 2 King Edward Street, London, EC1A 1HQ begin at 08:00hrs GMT, hosted by Andrew Heath, Chief Executive and Angela Noon, Chief Financial Officer to discuss this statement. The presentation will be broadcast live via the following link:
https://www.investis-live.com/spectris/67910c4da4d247000ef140f0/ythg
Operator Assisted Dial-In:
United Kingdom (Local): +44 20 3936 2999
United Kingdom (Toll-Free): +44 800 358 1035
Global Dial-In Numbers
Access Code: 621586
Copies of this press release are available to the public from the registered office at 6th Floor, The Block, Space House, 12 Keeley Street, London WC2B 4BA, United Kingdom and on the Company’s website at www.spectris.com.
About Spectris
Spectris combines precision with purpose, delivering progress for a more sustainable world. We provide critical insights to our customers through premium precision measurement solutions combined with technical expertise and deep domain knowledge. Precision is at the heart of what we do - our leading, high-tech instruments and software equip our customers to solve some of their greatest challenges to make the world cleaner, healthier and more productive. We are focused on two key Divisions – Spectris Scientific and Spectris Dynamics, which are placed in technology-driven end markets, with strong fundamentals and attractive growth trajectories. We have leading market positions in premium segments and employ around 7,600 people located in more than 30 countries, all united behind our purpose to deliver value beyond measure for all our stakeholders. For more information, visit www.spectris.com.