REG - Spectris PLC - Strategy for Sustainable Growth and new targets

SpectrisAnnouncement

19/10/2022 07:00

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RNS Number : 3323D  Spectris PLC  19 October 2022

Strategy for Sustainable Growth and new medium-term targets

19 October 2022 - Spectris plc (SXS: LSE), the expert in providing insight
through precision measurement, is today hosting a capital markets event to
outline its Strategy for Sustainable Growth and provide new medium-term
targets.

Andrew Heath, Chief Executive commented: "Since our last capital markets day
in 2019, we have transformed Spectris into a more focused and higher quality
business, well positioned in attractive markets with structural growth drivers
that are closely aligned to our ambition to be a leading sustainable business.
At today's capital markets event, we will demonstrate our confidence of
compounding growth into the future, supported by organic investments and
M&A, while continuing to expand operating margins. This Strategy for
Sustainable Growth will deliver our new medium-term financial targets and
drive long-term value for all our stakeholders."

Compounding growth model with new medium-term targets

•      Organic sales growth                  6-7% through the
cycle

•      Adjusted operating margin        20%+

•      Cashflow conversion                  80-90%

•      ROGCE
Mid-teens %

•      ESG
  Net Zero and employee engagement

 

Simplified reporting structure focused on two high quality divisions with compelling growth opportunities

Our businesses are focused on premium, precision measurement solutions, with
industry-leading domain expertise, aligned with our Purpose to make the world
cleaner, healthier and more productive.

The Group's new divisional reporting structure comprises two main divisions,
best reflecting the growth and margin expansion potential of the Group:

•  Spectris Scientific - a leader in advanced measurement techniques for
materials analysis, comprising Malvern Panalytical and Particle Measuring
Systems; and

•  Spectris Dynamics - a leader in advanced, integrated physical and
virtual testing as well as

high precision sensing solutions, comprising HBK.

The two divisions both have significant market positions, with growth and
margin expansion opportunities underpinned by leading product offerings and
plans for investment in R&D and M&A.

The event will be led by Chief Executive, Andrew Heath, and will feature
presentations from

Chief Financial Officer, Derek Harding, and other members of the Spectris
Executive Committee. The presentation will start at 13.30 and will be held at
Landing 42, The Leadenhall Building, 122 Leadenhall Street, London EC3V 4AB.
The presentation will also be webcast online. Details of the event can be
found at: www.spectris.com/investors/capital-markets-day-2022/

A summary of the Group's 2021 results under the new divisions is presented
below:

 2021                             Spectris Scientific  Spectris Dynamics  Other                      Group     Total

(non-reporting segments)

                                                                                                      costs
 Sales (£m)                       531.2                425.5              206.3                      -         1,163.0
 Adjusted operating profit (£m)   112.2                70.3               26.2                       (19.1)    189.6
 Adjusted operating margin (%)    21.1%                16.5%              12.7%                      -         16.3%

Red Lion and Servomex will be reported in the 'Other' segment of our reporting
going forward.

 

For and on behalf of Spectris plc

LEI Number: 213800Z4CO2CZO3M3T10

Contacts:
Spectris plc

Siobhán Andrews

Head of Corporate Affairs

+44 20 4551 4549 / +44 7920 230093

Tulchan Communications

Martin Robinson

Giles Kernick

+44 20 7353 4200

About Spectris

Spectris' global group of businesses are focused on delivering value beyond
measure for all our stakeholders. We target global, attractive and sustainable
markets, where growth and high returns are supported by long-term drivers.
Precision is at the heart of what we do. We provide customers with expert
insight through our advanced instruments and test equipment, augmented by the
power of our software and services. This equips customers with the ability to
reduce time to market, improve processes, quality and yield. In this way,
Spectris know-how creates value for our wider society, as our customers
design, develop, test and manufacture their products to make the world a
cleaner, healthier and more productive place. Headquartered in London, United
Kingdom, Spectris employs approximately 7,350 people located in more than 30
countries. For more information, visit www.spectris.com.

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