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Highlights
- FY23 sees Spectris PLC (LSE:SXS) achieve 9.2% revenue growth and a 20.0% rise in profit before tax.
- The company’s adjusted earnings per share increased by 25% to 199.7 pence in FY23.
- The company increased dividend payments by 5.0% in FY23.
Spectris PLC (LSE:SXS), an FTSE 250 company, specializes in delivering precise measurement solutions. Spectris utilizes precise measurement technology to empower its clients in fostering a cleaner, healthier, and more productive world. The company’s market cap stands at GBP 3274.38 million.
FY23 key highlights
- In FY23, the company's top-line revenue grew around 9.2% year on year (YoY) and its profit before tax rose around 20.0%. The company ascribed this growth to a rise in sales, which grew 10% in FY23.
- SXS' Adjusted cash conversion has improved from 74% in FY22 to 103% during FY23. Similarly, the adjusted earnings per share improved by 25% to 199.7 pence in FY23.
- The company has shown around 5.0% YoY growth in total dividend per share for FY23. It is likely to pay a final dividend of 53.90 pence per share on 28 June 2024.
- Similarly, the company witnessed a higher EBITDA margin in FY23 (20.7%), compared to the industry median of 19.7%. Its debt-equity ratio was also lower (0.05x) compared to the industry median of 0.13x.
- However, the company’s current ratio declined from 2.07x in FY22 to 1.89x in FY23.
Top 10 Shareholders:
Approximately 45.53% of the total shareholding in the company is held by its top ten shareholders. Fidelity Management & Research Company LLC holds the maximum number of shares with ~8.51% shareholding. It is followed by BlackRock Investment Management (UK) Ltd. with ~5.15% shareholding.
Company outlook
The company has concluded the divestment of Red Lion Controls (Red Lion) to HMS Networks for USD 345 million. Red Lion offers innovative software and hardware solutions to industrial organizations. As per Spectris, the divestment will accelerate its progress on portfolio rationalization. The company aims to focus on investing in growth opportunities and delivering appealing returns to shareholders amidst an unpredictable macroeconomic landscape this year.
Stock Performance
Share price of SXS has declined by ~1.98% in the last one month. Similarly, it has declined by around 2.2% over the last 6 months. The stock’s 52-week low and 52-week high stands at GBX 2,917.00 & 3,883.85, respectively. It is currently trading lower than the average of its 52-week high-low.
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 11 April 2024. The reference data in this report has been partly sourced from EODHD/Others.
