Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Birmingham Post
Birmingham Post
Business
Hannah Baker

Spirax-Sarco reports 'strong' first half amid supply chain disruption and inflationary pressures

Engineering firm Spirax-Sarco has reported “strong” financial results for the first half of 2022 against a backdrop of supply chain disruption and rising inflation.

The FTSE 100 firm, which is headquartered in Cheltenham, saw revenues rise 17% to £750.1m for the six months ending June 30, while adjusted operating profit rose 10% to £178.8m. The company’s adjusted operating profit margin was down 23.8%, but Spirax-Sarco said this reflected recent investments made by the firm.

In July, the valve and pump manufacturer signed a binding agreement to acquire Vulcanic - an electrical heating group of companies - for €261.7m (£222.5m) from Qualium, a French private equity company. The company also recently acquired energy consulting firm Cotopaxi, bringing the business into its steam specialities arm. Spirax-Sarco paid a total consideration of £13.3m for Cotopaxi, of which £12.8m was on a cash and debt-free basis. The transaction was funded through its cash resources.

Spirax-Sarco said its order books remained at “record levels” as it managed the challenges to its global supply chain. Steam specialties sales at the business were up 11%, while electric thermal solutions sales rose by 18%, the company said. The business currently has a net debt of £202.7m - up from £192.8m in the first half of 2021.

Nicholas Anderson, group chief executive, said: “I am grateful to all colleagues for their tireless efforts to support our customers in a challenging first half. It is this excellent execution and resilience that underpins our improved full-year outlook.

"Our strong profitability and robust balance sheet support our continued investment in growth, including our sustainability, digital and manufacturing initiatives.”

The listed firm’s interim dividend was up 10% to 42.5 pence, following 15% total increase in 2022.

READ NEXT

Like this story? Why not sign up to get the latest South West business news straight to your inbox.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.