Analysis of Spectris plc Annual Report and Accounts 2010

Introduction
Spectris plc is a public limited company located in the UK, and is a world leading suppliers of precision instrumentation and controls, which helps customers all over the world improve product quality and manufacturers make large advantage of materials, increase speed of production and reduce time to enter into market. It began to be listed on London Stock Exchange on 2008 and now is one of the members in FTSE 250(Wiki, 2011). The following report will explain and evaluate the company’s activities and financial performance, and finally discuss how the company has applied international accounting standards according to the published annual report and accounts 2010.

Spectris’ activities in recent years
Acquisitions and R&D are main methodologies that the company uses to expand the business. The customers of Spectris mainly come from North America, Europe and Asia. The company spends large amount of the revenue in R&D in order to build a close rapport with the customers. Acquisition is an efficient approach for Spectris, not only to increase its asset, but also help it to establish a new market and product strategy aiming at local customers in a short time, and that is one of the significant reasons why the profit of company keep increasing in recent years, and it is also one of the important part of successful model that the company creates to make its operation effectively.

The above graphs from the annual report suggest that revenue and profit of the company tend to increase from 2006 to 2010, even though the company suffered a sharp decrease in 2009, perhaps because of the large-extended financial crisis. The dividend still remains increasing in those five years, but the earnings per share decreases about 40%. On contrary to the decrease of revenue in 2009, the company revived