Spectris (SXS) launched a second round of cost-saving measures as the measuring instruments and controls supplier plans for a recovery that will last well into next year. Spectris secured just over half of the £20m in savings it has targeted for 2020, and the company aims to save the same amount next year via a new restructuring programme that will see job cuts and site closures.
Spectris’s Malvern Panalytical division, which manufacturers scientific instruments, was the most heavily-hit part of the company, experiencing a 25 per cent fall in revenues owing to the closure of academic institutions during lockdown and a fall in demand for metals and minerals. Elsewhere, Spectris wrote off the entirety of its Millbrook outfit’s £58.4m goodwill balance. Automotive specialist Millbrook has suffered due to a collapse in the car market and saw most of its events business shut down by the coronavirus pandemic.
There was happier news for income hunters. Having withdrawn its £175m special dividend in April and also postponed its 2019 final dividend, Spectris reinstated its dividend today and pledged an additional 43.2p payout to make up for last year’s deferral.
Investec forecasts full-year 2020 adjusted pre-tax profits and EPS of £155.5m and 104.8p respectively, rising to £202.6m and 136.7p in 2021.
| SPECTRIS (SXS) | ||||
| ORD PRICE: | 2,529p | MARKET VALUE: | £ 2.94bn | |
| TOUCH: | 2,526-2,531p | 12-MONTH HIGH: | 3,072p | LOW: 2,058p |
| DIVIDEND YIELD: | 0.9% | PE RATIO: | 14 | |
| NET ASSET VALUE: | 1,131p* | NET CASH: | £94.3m | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2019 | 759 | -50.1 | -41.8 | 21.9 |
| 2020 | 599 | -65.5 | -57.3 | 21.9 ** |
| % change | -21 | - | - | - |
| Ex-div: | 15 Oct | |||
| Payment: | 06 Nov | |||
| *Includes intangible assets of £784m, or 675p a share **Does not include additional dividend of 43.2p to be paid on 02 Oct in lieu of 2019 final dividend, with an ex-div date of 10 Sept | ||||
