23 February 2023 – Spectris plc (SXS: LSE), a leader in premium, precision measurement, announces full year results for the year ended 31 December 2022.
Strong performance, positioned for sustainable, compound growth
• Strong 2022 financial performance driven by continued strategy execution
• Sales growth of 14% (like-for-like ‘LFL’: 14%) from market share gains, volume growth and pricing
• Adjusted operating margin increased 50bps to 16.8%
• Profit for the year up 16% to £401.5 million
• Adjusted earnings per share increased by 26% to 159.9p
• Record order book, up 36% year-on-year, provides confidence into 2023
A simplified Group focused on two great businesses aligned to structural growth markets
• Spectris Scientific: sales growth of 24% (LFL: 18%); adjusted operating margins of 21.3% (2021: 21.1%)
• Spectris Dynamics: sales growth of 16% (LFL: 7%); adjusted operating margins of 15.0% (2021: 16.5%)
Investing for growth and attractive shareholder returns supported by a strong balance sheet
• Increased investment in our R&D programmes to 7.8% of sales to £103.8 million (2021: 7.2%, £83.8 million). Improved vitality index to 25% (23% in 2021)
• Bolt-on acquisitions across both Divisions with capacity for further value-enhancing M&A
• Sale of Omega completed for £418 million ($529 million) in July
• £190 million of £300 million share buyback programme completed
• Dividend per share increase of 5%, 33 years of continuous dividend growth
• Return on Gross Capital Employed (‘ROGCE’) increased to 16.0% (2021: 13.2%)
Confident of delivering organic growth in 2023, consistent with our medium-term objective of 6-7% alongside continued margin expansion
Commenting on the results, Andrew Heath, Chief Executive, said:
“I am delighted by our financial performance and strategic progress in 2022. We continue to grow strongly, reflecting the extraordinary efforts of our people across the Group to deliver for our customers. We are compounding our growth by taking share and opening up new opportunities, through increased investment in R&D driving new innovations, and M&A, supported by a strong balance sheet.
At our Capital Markets Day in October we presented our Strategy for Sustainable Growth. Spectris is now focused on two great premium precision measurement businesses in Spectris Scientific and Spectris Dynamics, aligned with attractive, sustainable, structural growth markets with high barriers to entry. With leading technologies and deep technical expertise, our teams are solving some of our customers’ toughest challenges, delivering increasing value and helping to make the world cleaner, healthier and more productive.
We enter 2023 with good momentum while remaining vigilant and alert to signs of changes in demand. The strength and quality of our order book, which is 36% higher than a year ago, gives us confidence into the first half of the year, as we continue to drive operational excellence to improve productivity and efficiency. Our expectation for 2023 is to deliver organic growth, consistent with our medium-term objectives of 6-7%, alongside strong progress on expanding margins and driving forward with our ambition to be a leading sustainable business.”
Contacts:
Spectris plc
Andrew Heath, Chief Executive Officer
Derek Harding, Chief Financial Officer
[email protected]
Tulchan Communications
Martin Robinson
Giles Kernick
+44 20 7353 4200
A meeting with analysts will be held at 9am GMT today at Farmers & Fletchers In The City, 3 Cloth Street, London EC1A 7LD. This will be available as a live webcast on the company’s website at www.spectris.com and a recording will be posted on the website after the meeting.
Copies of this press release are available to the public from the registered office at Melbourne House, 44-46 Aldwych, London WC2B 4LL, 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. Our two, high quality divisions – Spectris Scientific and Spectris Dynamics - are placed in technology-driven end markets, with strong fundamentals and attractive growth trajectories. We have leading market positions in premium segments and employ 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.