(Alliance News) - Spectris PLC on Wednesday warned full-year profit would be below expectations after a system overhaul took longer than expected and amid tough trading conditions at Malvern Panalytical.
Shares in the London-based supplier of high-tech instruments, test equipment and software for industrial applications fell 8.0% to 2,951.47 pence in London on Wednesday.
Spectris said the roll out of a new enterprise resource planning system had disrupted operations longer than hoped.
As a result, Spectris expects around GBP15 million of sales and GBP10 million of operating profit to move into the second half of the financial year with no impact on the full year as operations return to normal.
Additionally, in Malvern Panalytical, the 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, is expected to reduce sales and operating profit by a further GBP15 million and GBP10 million respectively in the first half.
As a result, Spectris now expects adjusted operating profit to be at, or marginally below, the bottom end of the range of consensus analyst expectations for the full year.
Spectris said a company compiled analyst range for adjusted operating profit for financial 2024 is between GBP232 million to GBP259 million.
Trading across other businesses is in line with expectations, Spectris added.
Interim results for six months to June will be published on July 30, the company said.
By Jeremy Cutler, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2024 Alliance News Ltd. All Rights Reserved.
Spectris (SXS)