StockMarketWire.com - Instrumentation and controls company Spectris said its sales rose 9% in the four months through October, while its full-year performance was expected to be in line with its expectations.

The company also announced it would attempt to cut costs in 2019 and would conduct a strategic review to reduce complexity and narrow its focus.

Like-for-like sales during the period rose 8%, with acquisitions, net of disposals, contributing 2% to sales growth.

Foreign currency movements had a negative 1% impact.

For the ten-month period through October, like-for-like sales rose 6% and reported sales rose 5%.

Sales were particularly strong in Asia, where they grew 16%, compared to more modest growth of 2% and 6% in Europe and North America, respectively.

Spectris also said that it had decided not to proceed with a global shared service centre model, given the cost of implementation versus the speed of returns.

Instead, it would implement a more comprehensive cost reduction programme in 2019.

'It is pleasing that we have continued to deliver good organic growth in the period,' chief executive Andrew Heath said.

'However, there are significant opportunities to improve the operational performance of the group by taking a more focused approach.'

'There are a number of self-help measures we can undertake.'

'We have strong gross margin businesses, but our operating margin performance remains below both historic highs and that of our peers.'

'Consequently, we are commencing a cost reduction programme across the group to be more efficient in delivering greater operational gearing in 2019 and beyond.'

Heath said the company had also commenced a strategic review to reduce complexity and target higher growth markets where it had a competitive advantage.








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