Spirax-Sarco Engineering proposes windfall after profit increase

FTSE 250-listed Spirax-Sarco Engineering has recommended a windfall dividend of 100p per share, worth a total of 78m pounds, after posting record sales and profit in 2012.

FTSE 250-listed Spirax-Sarco Engineering has recommended a windfall dividend of 100p per share, worth a total of 78m pounds, after posting record sales and profit in 2012.

The group, which supplies engineered solutions for commercial steam systems, reported a 2.0% rise in revenue to £661.7m in 2012 and adjusted operating profit of £136.2m, up from £134m in 2011.

Organic sales rose by 5.0%, operating profit was up 6.0% at constant currency and adjusted profit before tax rose 1.0% to £138.5m.

The dividend per share rose 8.0% to 53p.

Mark Vernon, Chief Executive Officer of Spirax-Sarco Engneering, commented: "I am pleased to report that the group delivered another year of record sales, profit and cash generation despite slowing global economic growth throughout the year.

"The resiliency of our business model and our good exposure to faster growing emerging markets in Asia, enabled the group to achieve 5% overall organic sales growth and higher profits, a noteworthy accomplishment given the particularly difficult economic environment in Europe.

"2013 has started in line with our expectations and we look forward to making further progress for the year," he concluded.

Spirax-Sarco Engneering's share price was up 2.96% to 2,577p at 09:10 on Thursday. This followed an early morning high of 2,634p per share.

MF

Recommended

Persimmon yields 12.3%, but can you trust the company to deliver?
Share tips

Persimmon yields 12.3%, but can you trust the company to deliver?

With a dividend yield of 12.3%, Persimmon looks like a highly attractive prospect for income investors. But that sort of yield can also indicate compa…
1 Jul 2022
Don’t try to time the bottom – start buying good companies now
Investment strategy

Don’t try to time the bottom – start buying good companies now

Markets are having a rough time, so you may be tempted to wait to try to call the bottom and pick up some bargains. But that would be a mistake, says …
1 Jul 2022
Share tips of the week – 1 July
Share tips

Share tips of the week – 1 July

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
1 Jul 2022
Bunzl: boring is good for business
Share tips

Bunzl: boring is good for business

Food-service distribution company Bunzl is not a terribly exciting business, but it looks cheap and could be a great investment, says Rupert Hargreave…
30 Jun 2022

Most Popular

UK house prices are definitely cooling off – but are they heading for a fall?
House prices

UK house prices are definitely cooling off – but are they heading for a fall?

UK house prices hit a fresh high in June, but as interest rates start to rise, the market is cooling John Stepek assesses just how much of an effect h…
30 Jun 2022
The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves looks at the FTSE 100’s top yielding stocks for income investors to consider.
22 Jun 2022
Five dividend stocks to beat inflation
Share tips

Five dividend stocks to beat inflation

During periods of high inflation, dividend stocks tend to do better than the wider market. Here, Rupert Hargreaves pick five dividend stocks for incom…
30 Jun 2022