LONDON (dpa-AFX) - Spectris plc (SEPJF.PK, SXS.L) reported profit before tax of 218.0 million pounds for the twelve months ended 31 December 2018, down 22 percent from 278.4 million pounds in the prior year. Earnings per share were 157.6 pence, down from 197.0 pence last year.
However, adjusted profit before taxation for the year increased to 241.4 million pounds from 234.2 million pounds a year ago. Adjusted earnings per share were 164.9 pence, compared to 154.6 pence last year.
Sales for the year increased 5 percent to 1.60 billion pounds from 1.53 billion pounds in the prior year. The company said the growth in reported sales reflected a 5 percent increase on like-for-like basis, helped by a supportive macroeconomic environment in a number of geographies and a strong demand backdrop in many of the company's key end markets.
The company's board has proposed to pay a final dividend of 40.5 pence per share which, combined with the interim dividend of 20.5 pence per share, giving a total dividend of 61.0 pence per share for the year, an increase of 8 percent. The dividend will be paid on 28 June 2019 to shareholders on the register at the close of business on 24 May 2019.
Spectris noted that work is ongoing to identify a group of operating companies which can deliver greater shareholder value creation, with sales growth, margin expansion and working capital efficiency as the key goals, underpinning growth in operating cashflow.
So far, the company's strategic review process has identified Malvern Panalytical, HBK and Omega, which together account for over 60 percent of Group sales and adjusted operating profit, as businesses that have this platform potential.
Looking ahead, Andrew Heath, Chief Executive, said, 'We expect sales growth to moderate in 2019, given the more cautious macroeconomic outlook. Consequently, we are focusing on what we can control; increasing productivity and operational efficiency, while driving sales.'
The company also said its profit improvement program is anticipated to deliver annualised benefits of more than 30 million pounds, of which 15 million to 20 million pounds is expected to be realised during 2019.
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