11th Aug 2021 08:48
(Alliance News) - Spirax-Sarco Engineering PLC on Wednesday raised its annual profit outlook and lifted its interim dividend, following a positive performance in the first half.
For the six months to June 30, revenue rose 13% to GBP643.7 million from GBP569.7 million last year, and pretax profit increased to GBP150.0 million, up 41% from GBP106.3 million.
Growth was attributed to a strong recovery of global industrial production in the period and sales growth from its Watson-Marlow business, with sales up 29% due to "exceptional Covid-19 vaccine related demand".
Spirax-Sarco declared an interim dividend of 38.5 pence, up 15% from 33.5p paid last year.
Shares were trading up 2.7% at 15,530.00 pence each in London early on Wednesday morning.
The energy management and niche pumping specialist managed to dramatically cut net debt, sitting at GBP192.8 million at the end of June, down 41% from GBP326.0 million a year before.
Looking ahead, the Cheltenham, England-based firm expects its second half operating margin to be similar to the first half margin of 24%. Full-year revenue is also expected to be in line with previous guidance while Watson-Marlow's annual organic growth in sales to the pharmaceutical and biotechnology sector remains unchanged at over 55%.
However, earnings guidance for the full year has been raised, with Chief Executive Nicholas Anderson commenting that "excellent first half execution underpins our improved full-year profit outlook".
"A strong recovery of global industrial production in the first half of this year, combined with exceptional Covid-19 vaccine related demand in Watson-Marlow, has supported strong organic sales and profit growth across all three businesses," added Anderson.
"These results continue to demonstrate the robust business model, strategy and execution of our group, being achieved through the outstanding efforts and dedication of all our employees in managing the higher levels of demand to meet our customers' needs."
By Will Paige; [email protected]
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