The companies in this segment are Malvern Instruments, PANalytical and Particle Measuring Systems. These businesses generally sell directly to global end user customers and provide aftermarket services such as technical support, instrument calibration and replacement consumables. Applications are typically in batch process manufacturing industries and research and development laboratories. Industries served include semiconductor, pharmaceuticals and life sciences, with applications also in metals, minerals and mining. The total market for materials analysis instrumentation is estimated to be around £9 billion.

In addition to the need to improve process manufacturing productivity, a key factor in the demand for this segment's products is the requirement for certification to comply with regulation, for example for quality control in the manufacture of drugs in the pharmaceutical industry and detection of materials such as lead and cadmium to meet legislation on the use of hazardous substances. Another driver for materials analysis instrumentation is the demand from the growth in new molecular and material sciences, where the equipment is used to analyse and characterise materials and structures in the development of new products.

Sales in Materials Analysis increased by 4% in 2007 to £213.8 million, and by 8% at constant currencies. Operating profit increased by 15% to £34.8 million and operating margins improved by 1.6 percentage points to 16.3%. Restructuring charges were £0.1 million, compared with £0.5 million in the prior year.

The metals and mining industries continued to grow, particularly in Australia, South America and southern Africa, benefiting Malvern and PANalytical.Malvern's in-line particle characterisation products saw strong growth in areas such as cement and print toners as the productivity benefits achieved by existing customers led them to extend the use of these products into their other facilities.