Spectris plc (SEPJF.PK, SXS.L), a renowned provider of precision instrumentation and controls, issued a cautionary statement regarding its first-half performance on Wednesday. The company now anticipates its adjusted operating profit for fiscal 2024 to either meet or fall marginally below the lower end of analysts' consensus expectations.
The revised outlook incorporates the anticipated first-half results and adjusted projections for the second half of the year.
According to the company's compilation, analysts' consensus range for adjusted operating profit for fiscal 2024 is between £232 million and £259 million.
In its second-quarter trading update, Spectris disclosed that approximately £15 million in sales and £10 million in operating profit linked to its new ERP system would shift to the second half, with no overall impact on the full-year results as operations normalize.
As mentioned in its first-quarter trading update in May, the company successfully rolled out the new ERP system globally across Malvern Panalytical in April. While the implementation was smooth and the system is now fully operational, the anticipated operational disruptions have persisted longer than initially expected.
Furthermore, Spectris now projects an additional reduction of £15 million in sales and £10 million in operating profit for the first half, specifically associated with Malvern Panalytical. The company attributes these declines to weaker demand in China, a significant downturn in battery development due to slowed electric vehicle sales, and continued sluggish trading in the pharmaceutical sector.
Trading across other business segments remains in line with expectations.
Spectris is scheduled to release its results for the first six months on July 30.
