Spectris’ (LSE:SXS) Statutory Net Profit Jumps, Despite 16.1% Revenue Decline in H1FY24

3 min read | August 06, 2024 04:46 AM AEST | By Team Kalkine

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Spectris’ (LSE:SXS) Statutory Net Profit Jumps, Despite 16.1% Revenue Decline in H1FY24 — Image source: Shutterstock

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Highlights

SXS ended H1 FY24 with an order book of £532 million, offering good revenue visibility for H2FY24

The company’s statutory profit before tax and statutory basic earnings per share surged by approximately 243.5% and 259.2%, respectively in H1FY24

The company raised its dividend per share by 5.1%, to 26.60 pence per share

Spectris PLC (LSE:SXS) is a supplier of precision instrumentation and controls. It is a constituent of the FTSE 250 Index and has a market cap of GBP 3012.64mn.

In H1 FY24, Spectris experienced a 16.1% decline in revenue. Nevertheless, the company ended H1 FY24 with an order book of £532 million, offering good revenue visibility for the second half of the fiscal year.

Despite the revenue drop, Spectris saw a significant increase in statutory profit before tax and statutory basic earnings per share, which surged by approximately 243.5% and 259.2%, respectively.

Additionally, the company raised its dividend per share by 5.1% to 26.60 pence per share, payable on November 8, 2024, with an ex-dividend date of October 3, 2024.

The company's gross margin stood at 54.9% and its current ratio was 2.36x in H1 FY24, both exceeding the industry averages.

Recent Business Update

On July 16, SXS announced its plan to acquire Micromeritics Instrument Corporation (Micromeritics). The deal will include an initial payment of USD 630 million (£485 million), with an additional contingent payment of up to USD 53 million (£41 million) based on Micromeritics' financial performance in 2024 and 2025.

Company outlook

The acquisitions of SciAps and Micromeritics are anticipated to boost the group’s high-growth and high-quality offerings, further enhancing its value proposition to customers. As stated by the company, with a strong portfolio of exceptional businesses and a clear strategy for growth and margin expansion, SXS is well-positioned for success as it looks ahead to 2025 and beyond.

Top 10 Shareholders:

The top 10 shareholders of Spectris together own approximately 43.11% of the company's shares. Fidelity Management & Research Company LLC is the largest shareholder, holding around 8.23% of the shares. This is followed by Wellington Management Company, LLP, which holds about 5.11% of the shares, as shown in the chart below.

Stock performance

The stock price of SXS has declined by approximately 1.36% over the past month and has fallen by around 20.80% over the last six months. With a 52-week low of GBX 2,728.00 and a 52-week high of GBX 3,861.00, the stock is currently trading below the average of these 52-week high and low values.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 05 August 2024. The reference data in this report has been partly sourced from EODHD/Others.

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