Sales downturn at Spectris after sale of software firm
Precision instrument maker Spectris experienced a slower first start to the year than expected, it announced in its quarterly update.
The company said sales had been “softer than expected” pointing to the strong comparative period after a strong start to 2023.
The provider of high-tech instruments and industrial software said sales were down eight per cent on a like-for-like basis, with an order book of £534m, three per cent up on year-end.
However, it retained its full-year guidance.
Operationally, the FTSE 250 firm has overseen a successful rollout of its new system this month and completed the sale of its Red Lion software division for $345m (£275m) at the start of April.
The sale helped it to a strong net cash position of £109m, which it said it planed to invest in research and development and the launch of several new products.
The equipment maker has also completed the first £50m tranche of its £150m buyback programme, which, it said, will help it to deliver another year of progress.
Andrew Heath, the firm’s Chief Executive, commented: “The first quarter of 2024 has been another productive period for the Group.
“We’ve successfully implemented the initial rollout of our new ERP system, launched a number of new, market-leading products and completed the sale of Red Lion, which represents the end of our portfolio rationalisation programme.”
The downturn in sales follows another fall of three per cent in the last quarter of 2023. This came after a bumper year for the acquisitive firm, in which sales approached £1.5bn for the first time.