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Spectris completes disposals and commencing £150m buy back

Spectris (LON: SXS) has completed its divestment plans by selling Red Lion Controls for $345m. This cash enables the precision management technology developer to launch a share buy back of up to £150m.

Spectris has raised £1.2bn from disposals. There are now two divisions – Spectris Scientific and Spectris Dynamics.  

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Sweden-based HMS Networks is acquiring Red Lion, which provides software and hardware to connect and access assets that enables visualisation of valuable data. In 2022, revenues were £91.3m and underling operating profit was £16m. After tax, the net proceeds will be $275m (£228m).

The initial £50m of the buy back will start before the end of the year. The rest of the disposal proceeds will be invested in research and development and other areas to promote organic growth. There could also be acquisitions.

Spectris will report its 2023 figures on 29 February. A pre-tax profit of £261m is forecast and the total dividend is expected to be 81.5p/share.

Today, the share price improved 10p to £35.14, which capitalises the company at £3.57bn. However, the announcement was not made until 5pm.

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