The Spectris Board has reflected on the decision regarding the 2019 final dividend of 43.2 pence per share which was postponed in April. An additional interim dividend of 43.2 pence per share will now be paid on 2 October to shareholders on the register at 11 September. In regard to the first half of 2020, an interim dividend of 21.9 pence has been declared, to be paid on 6 November. There is no change to their progressive dividend policy, which is based on affordability and sustainability.
Other financial hlighlights include:
• Better than expected Q2 performance: H1 sales of £599.0 million, a 14% LFL sales decrease
• Focus on cost control: execution of profit improvement programme and short-term, temporary cost measures delivered 11% reduction in LFL overheads
• Profit drop-through of 32%: adjusted operating profit decreased 41%, on a LFL basis, to £44.1 million
• Strong cash generation: net cash of £94.3 million at 30 June and adjusted cash flow conversion of 201%
• Statutory operating loss of £56.2 million includes a non-cash impairment charge of £58.4 million relating to goodwill and £20.8 million relating to acquisition-related intangible assets and other property, plant and equipment, predominantly at Millbrook
• Addressing new economic reality: profit improvement programme on track to deliver £20 million of benefits in 2020; restructuring programme announced and expected to deliver further benefits of £20 million in 2021
• Continued focus on strategy execution: deliver growth, drive operating margin expansion and optimise the portfolio
