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Merrill Lynch upgrades Spectris from underperform to neutral, target price raised from 1390p to 1560p
Second acquisition for Spectris this week Date: Thursday 06 Oct 2011 LONDON (ShareCast) - In its second acquisition of the week, precision instrumentation and controls company Spectris has purchased Sixnet LLC for $72m. The acquisition was made on a debt and cash-free basis. The cash cost, , equivalent to around £44m, will be met from existing cash and bank facilities. Sixnet will become part of Red Lion Controls in the Industrial Controls segment. John O'Higgins, Chief Executive of Spectris, commented: "The acquisition of Sixnet represents a further step in growing our strategic business segments and enables us to build our presence in the industrial controls sector." The firm also announced the appointment of a new business group director, and welcomed Stephen Blair to the board. "We are delighted that Stephen Blair has joined the executive management team. His background and experience are ideally suited to our range of technologies and industries and he joins us at an exciting time in our development," the group added.
http://www.investegate.co.uk/Article.aspx?id=201110060700216603P
Spectris (SXS) kept is "buy" rating from Singer Capital, with a 1,900p target price. The purchase of US based Sixnet will strengthen the precision instrument supplier's industrial controls division says the broker, and will build on the previous acquisition of Omega in August. Singer calculates that the takeover could add around 2% to Spectris' sales and operating profit in 2012. The broker's earnings forecasts put the group on an earnings multiple of 9.8 times for 2011 falling to 8.1 times in 2012, a 15% discount to the sector averages of 10.7 times and 9.6 times respectively. The shares rose 49p to 1,149p.
COMPLETION OF ACQUISITION OF OMEGA ENGINEERING Spectris plc, the productivity-enhancing instrumentation and controls company, today announces that it has completed the acquisition of the Omega Engineering business.
http://www.investegate.co.uk/Article.aspx?id=201110030700273711P
Commenting on the results, John O'Higgins, Chief Executive, said: "We are very encouraged by the excellent results in the first half, delivering double-digit sales and profit growth in all four of our business segments. Trading in the weeks since our last update on 15 July has remained in line with our expectations. We continue to expect that growth rates will revert to more normal levels following the strong recovery in the second half of 2010. The focus we maintained on all aspects of our strategy continues to deliver results and we remain confident that Spectris will make good progress for the full year."
Highlights · Double-digit sales and profit increase in all segments · Strong growth in all four regions · Contribution from 2010 acquisitions ahead of expectations · Record first half operating profit and earnings per share · Cash conversion at top end of our expectations · Agreement reached to acquire Omega Engineering for $475 million · Dividend up by 15%
http://www.investegate.co.uk/Article.aspx?id=201108230700128292M
Spectris has come a long way since, as the Fairey Aviation Company, it made seaplanes. The company is now focused on high specification instruments and controls for a range of industries. The purchase of Omega Engineering is the most significant move since the acquisition of the old Philips Analytical business from the Dutch electrical goods manufacturer ten years ago. Spectris shares have taken a serious kicking in the recent market mayhem. The company’s exposure to world industrial markets make it vulnerable to any economic downturn. The shares had been running away beforehand and were probably due for a correction. They now sell on a more reasonable 11 times earnings, though market jitters over the macroeconomic outlook could limit immediate gains, says the Times.
Spectris (SXS) has bought control instrumentation manufacturer Omega Engineering for 475 million dollars (290 million pounds), as part of the engineering company's strategy to acquire stand-alone businesses with similar characteristics to its own. Spectris expects the target to be earning enhancing in the next financial year. Chief executive John O'Higgins said that the purchase will: "bring a significant strategic growth platform to our Industrial Controls segment."
http://www.investegate.co.uk/Article.aspx?id=201108150700113420M
Commenting on the results, John O'Higgins, Chief Executive, said: "We are very pleased with the excellent start we have made to the year, delivering sales growth in all four of our business segments. Looking ahead, growth rates in the second half of 2011 are likely to revert to more normal levels following the strong recovery in the second half of 2010. We remain confident that Spectris will make good progress for the full year."
SPECTRIS PLC 2011 FIRST HALF TRADING UPDATE Spectris plc ("Spectris", "the company" or "the group"), the productivity-enhancing instrumentation and controls company, today issues an update on trading for the six months ended 30 June 2011. The company's half year results will be released on 23 August 2011. Our May Interim Management Statement reported strong trading conditions for the first four months of 2011, and these continued for the remainder of the half year, with healthy demand in all regions and end markets. As a result, we expect sales for the first six months of 2011, on a constant currency organic ("like-for-like") basis, to be 21% higher than the comparable period last year. On a reported basis, sales are expected to increase by approximately 25%, including a contribution from acquisitions (+5%) and the effects of currency (-1%). All four segments and major regions will show double-digit like-for-like sales growth. Regionally, Asia Pacific is expected to grow by around 21%, North America by approximately 26% and Europe by around 18%. Adjusted operating profit is expected to be in the region of £80 million (2010:£49.9 million), giving an adjusted operating margin of approximately 16%. This compares with 12.3% for the same period last year. Operating cash conversion was in line with our expectations and our financial position remains strong, with net debt of approximately £74 million at the end of June.
http://www.investegate.co.uk/Article.aspx?id=201107150700074387K
Spectris develops and markets productivity enhancing instrumentation and controls, and has a diverse end-user base with no single industry accounting for more than 10 per cent of its revenues. By being a provider of niche products into a range of industries, Spectris is well-placed to counter many of the challenges facing other industrial companies. With over £300m headroom on its balance sheet to finance acquisitions, the company has the firepower to consider smaller “bolt-ons” as well as more transformative deals, according to the Scotsman, which recommends a ‘buy’.
I was at one of their subsidiary companies recently having a chat about a job. The MD & ED both indicated that the share price seems to have gone higher than SXS had anticipated, but that's the market for you. The indications were that SXS management would have preferred a more gradual rise in SP over a longer period. However, all indications are that SXS has great prospects and the subsidiary I was talking to wants to double their turnover from £50M to £100M+ within 2-3 years. That type of attitude prevails at many SXS subsidiaries and, with the dividend, is what drives the confidence in this share.
Xan - well they are performing nicely just now!
Trading in the first four months of this year has been strong at Spectris (SXS), the precision instruments and controls group announced, assisted by a healthy order book following the particularly good performance in the last months of 2010. The group added that it has made good progress throughout all segments, geographic regions and end markets. Shares in Spectris, whose products and technologies help customers to improve product quality and performance, moved ahead 60p to 1,551p on Friday
SXS was at about 350-450p when I worked at the Sub. I saw SXS go to ~600p and then drop to ~500p in 2009. Didn't have money back then. Kept getting calls from old mates saying how well their SXS share plans were doing and all that... shoulda, coulda, woulda.....didn't have the cash. It's still in my Yahoo Fantasy list...doing very well!!! Pays a great divi too....It's one for when I want to retire with income.
Xan - howdy - 500p would have been a very nice purchase! looks good here but no money - its on my watch list but I need some others to come good first - never easy !
Spectris profits power ahead Date: Friday 25 Feb 2011 LONDON (ShareCast) - Profits more than doubled last year at instruments group Spectris as recovery from the general recession came through much stronger than anticpated. Pre-tax profits soared to £120m, up from £54.2m, on sales of £902m, up from £787m. On an adjusted basis profits were over 90% better at £132m. "We are very pleased with the group's performance in 2010, with trading exceeding our expectations across all four business segments," the firm said. "Looking ahead, we expect a return to more normal sales growth during 2011 and we will continue to pursue our strategy of investing in new products and applications, seeking acquisition opportunities and expanding our market positions and regional presence." The dividend for the year rises by 15% to 28p.
Hello over here at SXS. I used to work for them at a subsidiary.....and am kicking my emotional self for not buying at ~500p. Let me know if you need to chat about prospects anytime....I'll see what I can dig up. ;o)
Impressive figures
Commenting on the results, John O'Higgins, Chief Executive, said: "We are very pleased with the group's performance in 2010, with trading exceeding our expectations across all four business segments. This performance was strongest in Test and Measurement as a result of both key account wins and the benefits from the integration restructuring carried out in 2009. As trading recovered, the temporary cost savings of 2009 were reversed in a deliberate and measured way. Looking ahead, we expect a return to more normal sales growth during 2011 and we will continue to pursue our strategy of investing in new products and applications, seeking acquisition opportunities and expanding our market positions and regional presence. As a result, the Board believes Spectris is well positioned to make further progress in 2011."