Spirax-Sarco engineers improved performance

Spirax Sarco Engineering is battling away as demand remains "resilient", despite weakening global macro-economic conditions in recent months.

Spirax Sarco Engineering is battling away as demand remains "resilient", despite weakening global macro-economic conditions in recent months.

Total sales in sterling were ahead 2% in the first 10 months of 2012, after including the impact of unfavourable currency movements and two small disposals last year.

More specifically, and for the four months ended October 31st, organic sales increased 6%, ahead of the rate of growth reported in the first half year.

Over the same period operating profit was 8% ahead on a constant currency basis. Against a decline of 3% for the first half of the year, this means that for the first ten months ending October 31st operating profit was 2% ahead of last year on a constant currency basis.

Notably, the Asia Pacific region and the Watson-Marlow pumps business achieved strong double-digit sales growth in the period. The Americas saw a more modest advance while sales in the Middle East and Africa (EMEA) segment experienced a slight decline.

As regards Watson-Marlow, the improvement in operating profits was due to the planned increases in R&D and market development costs in the first half year now unwinding in the second half. The results also improved in EMEA, as the cost base in Europe is being progressively lowered and the profitability of its supply operations increased.

In its trading update the steam trap and pump maker took care to stress: "Although our forward visibility remains short and we are not immune to a worsening in our markets, which can be reflected fairly quickly in our mid-cycle business, the board continues to expect the group to make progress for the full year."

Net cash balances at the end of October 2012 increased to £43m compared with £9m at June 30th 2012.

The interim dividend of £12m will be paid on November 9th.

CM

Recommended

The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves takes a look at the companies with the highest dividend yields in the UK’s blue-chip index
23 Jan 2023
The top ten dividend stocks in the FTSE 250
Share tips

The top ten dividend stocks in the FTSE 250

The average FTSE 250 dividend yield is around 4%, but many stocks yield much more. Rupert Hargreaves picks the best FTSE 250 stocks for income investo…
17 Jan 2023
The top funds to invest in
Funds

The top funds to invest in

As market volatility and recessionary fears continue, here are the most popular funds, stocks and trusts investors are putting their money into accord…
5 Jan 2023
Investing trends to watch out for in 2023: what analysts say
Investment strategy

Investing trends to watch out for in 2023: what analysts say

What are sensible strategies for high inflationary times? We ask analysts to find out.
22 Dec 2022

Most Popular

House prices could fall 30%. Should investors be worried about a repeat of 2008?
Investments

House prices could fall 30%. Should investors be worried about a repeat of 2008?

Some analysts are predicting that house prices could fall as much as 30%, which, when compared to the fact that prices have jumped 28% since April 201…
24 Jan 2023
Will energy prices go down in 2023?
Personal finance

Will energy prices go down in 2023?

Wholesale gas prices are on a downward trajectory, but does this mean lower energy bills later this year?
27 Jan 2023
Council tax increases 2023 – how much more will you pay?
Tax

Council tax increases 2023 – how much more will you pay?

Your council tax bill will go up in April - we reveal the councils that have confirmed what this year’s increase will be.
23 Jan 2023