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Nov 13 2024, 06:50 GMT
Spectris
More realistic guidance, but where’s all the cash going?
- Sectors : Capital Goods
- Companies : Spectris
DAVY VIEW
Spectris has delivered what the market expected – reduced FY24 profit guidance. This has been driven by the lack of broad recovery in key end markets during Q324, and this is not expected to materially improve in Q424 or Q125. We downgrade our FY24E adj. EBITA to £192m, below guidance of “around £200m”. Our attention now turns to the FY25E balance sheet and the lack of de-levering due to committed cash outflows. Our new FY25E net debt remains above 2.0x EBITDA. We upgrade to ‘Neutral’ and await signs of strong execution of the ERP rollout, acquisition cost synergies and effective integration of the three new companies.
