LONDON (dpa-AFX) - Spectris plc (SEPJF.PK, SXS.L), a supplier of precision instrumentation and controls, on Wednesday warned on first-half performance, and said it now expects fiscal 2024 adjusted operating profit to be at, or marginally below, the bottom end of the range of consensus analyst expectations.
The outlook reflects the expected performance in the first half, and its revised expectations for the second half.
The company compiled analyst consensus range for adjusted operating profit for fiscal 2024 is 232 million pounds to 259 million pounds.
In its trading update for the second quarter, Spectris said it expects around 15 million pounds of sales and 10 million pounds of operating profit on its new ERP system to move into the second half with no impact on the full year as operations return to normal.
As announced in its first quarter trading update in May, the company rolled out new ERP system globally across Malvern Panalytical in April. The implementation went well and the system is fully functioning, but the anticipated disruption to operations, that is typically associated with projects of this type, has lasted longer than originally expected.
In addition, the company sees a reduction in sales and operating profit by a further 15 million pounds and 10 million pounds, respectively, in the first half related to the Malvern Panalytical. The company said 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 would hit the results.
Trading across other businesses is in line with expectations.
The company plans to publish the first six month results on July 30.
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