Spectris : Presentation (Full deck vFINAL)
SXS.L
Spectris plc
Full year results 2024
28 February 2025
Introduction
Andrew Heath
Chief Executive
FY results 2024
Strong finish to 2024 after prolonged softness across end markets
2024 financials
FY performance in line after strong Q4
LFL orders -3%
Flat H2 and 6% growth in Q4
LFL sales -7%
H2 sales -4%
Cash conversion 88%
Increase in dividend of 5%
35th successive year of growth
Last Twelve Months (LTM) orders and year-over-year order growth trends
1400
40%
1300
30%
1200
20%
1100
10%
1000
0%
900
-10%
800
-20%
Dec-21
Jun-22
Dec-22
Jun-23
Dec-23
Jun-24
Dec-24
LTM trailing orders
3/12 (RHS)
12/12 (RHS)
Data is at constant currency and excludes Micromeritics, SciAps, Piezocryst and Red Lion
Thank you to Spectris colleagues
FY results 2024
3
Strong year of execution to accelerate strategy
Strategic highlights
Decisive actions on cost to drive future
profitability
Three high-quality, strategically aligned
acquisitions
Record year for new product launches
Implementation of ERP
to drive margins
Continued progress on operational
excellence and sustainability
Profit Improvement Programme
High-quality acquisitions
£50m
£30m
20252026
Significant strategic progress positions Spectris more strongly
FY results 2024
4
Disciplined and balanced approach to capital allocation
Portfolio
rationalisation
complete
Strong
shareholder
returns
Investing in
growth
Highly cash generative
Sources and uses of cash 2019 to 2024 (£m)
Increase in
252
Capex/SaaS
net debt
Working capital
R&D
Cash flow
2,196
Dividends
from operations
M&A
Buyback
Disposals1,257
Other
393
27
597
466
1,136
604
482
Sources
Uses
FY results 2024
5
Guidance and outlook
Entered 2025 in a
• Strong year of strategic execution in 2024
•
Remain cautious on macro environment
strong position
•
Markets have stabilised but need evidence of sustained recovery
Well positioned for • Significant operational leverage opportunity as markets recover and growth returns market recovery • Profit Improvement Programme provides confidence
• Comfortable with current consensus expectations for operating profit for full year
2025 guidance
•
Confidence in future prospects rooted in focused portfolio and clear value-enhancement plan
Medium-term
• Great businesses with leading market positions
•
Two, world-class divisions
outlook
•
Disciplined and focused on shareholder returns
Spectris is a company capable of delivering out-sized value creation
FY results 2024
6
Financials
Angela Noon OBE
Chief Financial Officer
FY results 2024
A great business with huge potential
8
Key financial highlights
Profit & Loss (£m)
2024
2023
LFL change
Orders
1,294.1
1,373.8
(3%)
Sales
1,298.7
1449.2
(7%)
Gross profit
715.9
838.1
(12%)
Gross margin (%)
55.1%
57.8%
(290bps)
Adj. operating profit
202.6
262.5
(20%)
Operating margin (%)
15.6%
18.1%
(250bps)
EPS (pence)
148.1p
199.7p
Cash flow (£m)
2024
2023
YoY change
Adjusted operating cash flow
177.6
271.1
(34%)
Cash conversion
88%
103%
(15pp)
ROGCE
11.6%
18.5%
(690bps)
Net debt / (cash)
549.0
(138.8)
Leverage
2.3x
(0.4x)
LFL orders 3% lower; flat in H2
Book-to-bill of 0.99x
LFL sales 7% lower due to prolonged market softness
Drop through impact on profit
from lower volumes
Cash conversion 88%
Leverage at 2.3x due to
investment in M&A
c.$400m USPP secured on investment grade terms
FY results 2024
9
Adjusted and statutory operating profit
Income statement (£m)
2024
2023
Adjusted operating profit
202.6
262.5
Restructuring costs
(18.3)
-
Net transaction-related costs and fair value
(16.2)
(14.0)
adjustments
Configuration and customisation costs carried out by
(44.7)
(40.0)
third parties on material SaaS projects
Amortisation of acquisition-related intangible assets
(25.0)
(18.9)
Statutory operating profit
97.6
188.6
Share of post-tax results of associates
(0.4)
(0.1)
Fair value through profit and loss movements on debt
(1.9)
2.8
investments
Profit/(loss) on disposal of businesses
210.2
(12.6)
Net financial (cost)/income
(2.8)
6.9
Statutory profit before tax
302.7
185.6
Restructuring costs to support Profit Improvement Programme
Transaction-related costs resulting
from the three acquisitions
Peak year for ERP implementation costs
Profit on sale of Red Lion Controls
Net finance costs driven by
an increase in debt
FY results 2024
10
Disclaimer
Spectris plc published this content on February 28, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on February 28, 2025 at 11:28:29.020.