Spirax-Sarco FY profits up as divi lifted 10%
Engineering group Spirax-Sarco on Thursday reported a 22% rise in pre-tax profits to £174.1m.
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Adjusted operating profit increased 18% to £180.6m million from GBP152.4 million as revenue rose to £757.4m from £667.2m in 2015.
The full year dividend was raised by 10% to 76.0p a share from 69.0p each.
The collapse in the pound after the UK referendum decision last June to leave the European Union boosted sales by 8%, Spirax said.
Acquisitions and disposals was added an additional net 1% to revenues. As a result, reported sales were 14% higher than 2015.
“Our Watson-Marlow Fluid Technology Group followed up a good 2015 with another strong year which saw organic sales up 10%, spread across all geographic regions. The Spirax Sarco Steam Specialties business also performed well with organic sales increasing by over 2%, with gains in all divisions,” the company said.
Chief Executive Nicholas Anderson said Spirax would “prioritise accelerating revenue and capital investments for growth over further margin expansion, to ensure we continue outperforming our markets by delivering organic sales growth”.
“Assuming no significant deterioration in trading conditions, the board expects to make further progress in 2017," he added.