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.

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.

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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