Spectris shares hit record highs

Much of the reported revenue was driven by acquisitions. Exclude these and currency effects, and organic growth of 3 per cent was slightly behind the historic average of 5-6 per cent. Across the divisions it was Industrial Controls driving the results. Acquisitions almost doubled revenue to £217m, while adjusted operating profit leapt from £22.1m, to £46.3m, a fifth of the total. Slowing demand from the mining industry at the end of 2012 meant like-for-like sales growth in the Materials Analysis slowed from 21 per cent to 5 per cent, and the trend has continued into the new year.

Once again it was strong sales growth in the Asia Pacific and North America, up 6 and 5 per cent respectively, that offset declining markets in Europe. Cash conversion remained strong with net debt falling £102m, to £254m at the year end. This will come down further on the receipt of about £70m after tax from disposal that completed at the end of January.

Broker N+1 Singer forecasts broadly flat revenues this year and adjusted pre-tax profits of £223.8m, and EPS of 141.3p (2012: £217.3m/137.5p).