Spectris (SXS) Trading Update summary

Leadership and organizational changes

• Derek Harding will transition from CFO to president of the enlarged scientific division, overseeing Malvern Panalytical, PMS, and Servomex.

• Angela Noon will join as the new CFO, bringing experience from industrial and technology sectors.

• Mark Fleiner, current division president, will depart after five years of significant growth.

• The leadership team aims to drive further growth and integration across the scientific businesses.

ERP system implementation and operational impact

• Successful SAP S/4HANA rollout at Malvern Panalytical, with a transition issue at the X-ray facility in Almelo causing order processing delays.

• ERP system rollout caused longer-than-expected disruption, shifting GBP 15 million in sales and GBP 10 million in operating profit to H2, with no full-year impact as operations normalize.

• The ERP issue is expected to be resolved in Q3.

• Lessons from this rollout will inform a phased ERP implementation in Dynamics, reducing future risk.

Trading update and market outlook

• Weaker demand in China, reduced battery development linked to EV slowdown, and subdued pharma trading will reduce H1 sales by GBP 50 million and operating profit by GBP 10 million.

• These trends are expected to persist into H2, with no anticipated recovery in China, pharma, or battery sectors.

• Adjusted operating profit for the year is now expected at or marginally below the bottom end of consensus expectations (£232m–£259m).

• Other business segments are performing in line with expectations.

• H1 2024 results will be published on 30 July 2024.