Highlights
• 3% sales growth at constant exchange rates, comprising a three percentage point contribution from acquisitions and unchanged like-for-like ('LFL') sales
• 9% decline in LFL operating profit, after inclusion of £7 million of restructuring costs to improve future profitability
• Good strategic progress, including completion of five acquisitions for a total consideration of £45 million
• Strong operating cash conversion of 91%
• Dividend per share increase of 6%
Commenting, John O'Higgins, Chief Executive, said: "2015 was characterised by mixed trading conditions, with growth in Europe and Asia offset by a challenging environment in North America and the Rest of the World. We are on track with the restructuring measures announced last July. The benefits of these, together with our focus on operational excellence initiatives, will enable us to better align cost growth with sales growth in 2016 whilst continuing to invest in our core R&D programmes. New product launches and acquisitions are expected to continue to play an important role in the Group's development and these investments, together with our broad end-market exposures and strong financial position, provide the Board of Spectris with confidence that the Company is well positioned for 2016 and beyond."
Financial position and dividend
Operating cash flow was strong, with 91% of our operating profit being converted into cash. Combined with normal dividend and tax outflows and the consideration paid for the five acquisitions made during the year, this resulted in net debt decreasing by £27.0 million compared with the end of 2014. At year end, net debt stood at £98.6 million, around 0.5 times the full year EBITDA of £205.5 million.
The Board is proposing to pay a final dividend of 32.2 pence per share which, combined with the interim dividend of 17.3 pence per share, gives a total of 49.5 pence per share for the year, an increase of 6%. The dividend is covered 2.3 times. This is consistent with our policy of making progressive dividend payments based upon affordability and sustainability. The dividend will be paid on 24 June 2016 to shareholders on the register at the close of business on 26 May 2016.
