9th Mar 2023 10:53
(Correcting to clarify that industrial production growth forecasts are not Spirax specific)
(Alliance News) - Spirax-Sarco Engineering PLC on Thursday said revenue was up by a fifth, as profit fell marginally, despite the effect of the war in Ukraine on its production growth.
The thermal energy management and pumping company reported revenue of GBP1.61 billion, up 20% from GBP1.34 billion in 2021. The revenue increase was driven by volume growth and price increases to protect margins, the firm noted.
The company said pretax profit was GBP308.1 million, falling 2.0% from GBP314.5 million a year ago.
The company declared a final dividend of 109.5 pence per share, increasing 12% from 97.5p the year prior, bringing the total dividend to 152.0p per share, also increasing 12% from 136.0p.
Spirax-Sarco said it had expected a softening of global industrial production growth after the 7.7% expansion in 2021. However, the war in Ukraine, and the resulting economic effects, as well as global supply chain disruption, have resulted in a 2022 IP growth of 2.7% for the industry, considerably lower than the 4.4% forecast in February 2022.
Looking ahead, the company said its strong business model, self-generated sales and the demand from maintenance and repairs underpins its "confidence in another year of progress".
Chief Executive Officer Nicholas Anderson said: "We remain confident in our ability to self-generate growth and protect margins, while navigating the uncertainties ahead. In 2023, we anticipate mid-single-digit growth over 2022 group pro-forma sales, with mid-to-high single digit growth in Steam Specialties and Electric Thermal Solutions, as well as Watson-Marlow sales slightly below 2022.
"We look forward to delivering another year of overall double-digit sales growth, together with a small progression in the group's adjusted operating profit margin and improved cash conversion".
Spirax-Sarco shares fell 4.0% to 11,400.00 pence each in London on Thursday morning.
By Harvey Dorset, Alliance News reporter
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