11th Mar 2025 09:35
(Alliance News) - Spirax Group PLC on Tuesday said it remains confident in the execution of its strategy as it posted improvements in its dividend and profit despite weaker sales.
Cheltenham, Gloucestershire-based Spirax, formerly known as Spirax-Sarco Engineering, is a thermal energy and fluid technology company.
Spirax said its pretax profit improved 5.9% in 2024 to GBP258.9 million from GBP244.5 million in 2023, despite revenue remaining broadly flat.
It reported GBP1.67 billion in revenue for the year, down 1.0% from GBP1.68 billion. On an organic basis, it recorded organic revenue growth of 4%, which it said it achieved "despite weaker than expected global industrial production growth".
Chief Executive Nimesh Patel noted that "All three of [its] businesses delivered organic sales growth with margins in line with [its] expectations".
Divisionally, Electric Thermal Solutions was the standout performer. On a reported basis, its revenue increased 6.9% to GBP404.6 million from GBP378.5 million.
Steam Thermal Solutions contracted 4.6% to GBP867.9 million from GBP910.1 million, and Watson-Marlow Fluid Technology Solutions revenue fell 0.3% to GBP392.7 million from GBP394.0 million.
The improved profitability for the FTSE100-listed firm can be attributed to the 2.7% decline in operating costs, reducing to GBP1.36 billion from GBP1.40 billion.
Spirax declared a final dividend of 117.7 pence per share, up 3.1% from 114.0p. Its total dividend came for the year came to 165.0p, a 3% uplift on the previous year's figure of 160.0p.
Shares in Spirax were down 2.6% at 6,845.00 pence on Tuesday morning in London.
Looking ahead, Spirax expects organic growth for 2025 to be consistent with 2024, with restructuring to realise annualised benefits of approximately GBP35 million for investment in organic growth.
The restructuring refers to the firms consolidation of manufacturing facilities and organisational changes. Spirax said the cash cost of delivering this programme will be mostly incurred in 2025 and is anticipated to be around GBP35 million, with an additional non-cash cost of GBP5 million.
CEO Patel said: "Our 2024 results demonstrate the continuing robustness of our business model in a challenging environment.
"I am particularly pleased with progress in ETS, where improvements to manufacturing throughput supported higher sales and improved margin," continued Patel.
"Mindful of the outlook for IP, I remain confident in the execution of our strategy and in the strength of our business model, which together will sustain organic sales growth well ahead of IP and mid-single digit organic profit growth in 2025."
By Christopher Ward, Alliance News reporter
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