Spectris shares dropped 5.8% to 2,930p in late afternoon trading on Monday following a reported pre-tax profit fall of 77% to £41.8 million in HY1 2022 compared to £181.9 million the last year.
The precision measuring firm announced a statutory operating profit dip of 2% to £54.3 million against £55.4 million, along with an operating margin fall of 0.8% to 9.5% from 10.3%.
Spectris confirmed a 6.1% growth in sales to £570.2 million compared to £537.5 million, with a 20% rise in like-for-like order growth and a record order book, providing strong visibility for HY2.
The firm also drew attention to an 11% like-for-like sales growth driven by market shares gains, with a 6% increase in statutory reported sales.
The group mentioned a 55.1% decline in cash generated from operating to £43.4 million against £96.7 million.
Spectris further noted an EPS from continuing operating tumble of 82.6% to 26.5p compared to 152.4p year-on-year.
The company highlighted its completed sale of Omega for £410 million headline proceeds in July, delivering additional shareholder value.
“Over the past three years, we have transformed the Group into a more focused, more profitable and more resilient business, with the ability to compound growth at a higher rate through the cycle,” said Spectris CEO Andrew Heath.
“Today, Spectris is in a position of strength with a robust balance sheet, well positioned in attractive end markets, with strong fundamentals, supported by key sustainability themes to deliver structural growth. We have fantastic, engaged people all contributing to a purpose-led, high-performance growth culture.”
“I am pleased with our progress in the first half of 2022. We are continuing to see healthy demand for our products and services, with strong LFL growth in both orders and sales. While vigilant to the macro environment and alert to signs of changes in demand, we have confidence in our business and have increased our investment for growth in R&D, to enhance our customer offerings.”
The group confirmed an expected high-single-digit order growth and margin expansion for FY 2022, boosted by its Spectris Business System and pricing already present in the order book.
Spectris raised its dividend 5% to 24.1p against 23p the year before. The company also reported the completion of its £150 million share buyback, with the remaining £150 million scheduled to recommence.