Spectris warns on profits after weak lab tools sales

19th Jun 2024 07:21

(Sharecast News) - Pprecision instrumentation and controls group Spectris has said full-year profits will miss current market forecasts as a result of weaker-than-expected demand at its lab equipment division in the first half.

Sales at the Malvern Panalytical division are expected to be £15m lower than previously expected in the first half, while operating profit has seen a £10m impact.

Spectris said this was driven by a "combination of weaker demand in China, a significant reduction in battery development, associated with the slowdown in sales of electric vehicles, and continued, subdued trading in pharmaceuticals".

While trading across the rest of the business has been in line with expectations, 2024 adjusted operating profits will be "at, or marginally below" the bottom end of the current £232-259m consensus range, down from £262.5m in 2023.

The news came as the company announced that Royal Mail's chief financial officer Angela Noon would be joining as its new CFO.

The appointment follows current CFO Derek Harding's move into a new position as president of the new, enlarged Spectris Scientific Division, which encompasses the Malvern Panalytical, PMS and Servomex businesses.

Noon, a chartered management accountant and former CFO at Siemens UK & Ireland, will join the board on 1 September, "bringing significant financial and commercial experience from the industrial and technology sectors", according to chief executive Andrew Heath.