14th Nov 2024 10:39
(Alliance News) - Spirax Group PLC on Thursday said its outlook for all of 2024 is unchanged, following organic sales growth in the first 10 months.
Cheltenham, Gloucestershire-based Spirax, formerly known as Spirax-Sarco Engineering, has three thermal energy and fluid technology businesses - Steam Thermal Solutions, Electric Thermal Solutions, and Watson-Marlow Fluid Technology Solutions.
Spirax said it still expects mid-single-digit percentage organic revenue growth in 2024, with an adjusted operating profit margin broadly in line with 2023's margin of 20%, both at constant currency. The foreign exchange headwind on 2024 results will be 1% greater than expected at the time of its half-year results in August, it said.
In the 10 months to October 31, organic sales growth was ahead of growth in the first half of the year, when it was 1%. All three businesses have sales above a year before at constant currency, Spirax said.
It said this was achieved despite slowing industrial production growth globally, with particularly challenging conditions in China.
Net borrowings on October 31 were GBP642 million, reduced from GBP718 million on June 30, giving a ratio of net debt to earnings before interest, tax, depreciation and amortisation of 1.7 times, improved from 1.9 times in June.
Spirax shares were up 4.4% to 6,650.00 pence on Thursday morning in London.
By Tom Waite, Alliance News editor
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