Spirax Group eyes return to growth this year after challenging 2023

Cheltenham-headquartered Spirax Group (formerly Spirax-Sarco Engineering) said it was "well positioned" to return to revenue and profit growth in 2024 despite a challenging trading environment last year.

The thermal energy group reported a drop in profits for the 12 months to December 31 but a final dividend of 160p for the year, up 5% from 2022.

READ MORE: Spirax-Sarco Engineering rebrands as Spirax Group

Statutory profit before tax fell to £244.5 million, from £308.1 million in 2022, while statutory operating profit margin fell to 16.9% from 19.8%. This reflected the impact of restructuring and impairment costs, the company said.

Revenues for the year were up 4% reflecting full-year contribution from acquisitions but were down 1% organically, it added.

CEO Nimesh Patel told investors in a statement: "Our financial results in 2023 were impacted by a more challenging trading environment than we had anticipated at the start of the year, with a number of external headwinds to our highest margin businesses.

"An early focus on restructuring to right-size capacity, together with cost containment actions, supported our adjusted operating profit margin. We are well positioned to return to revenue and profit growth in 2024."

Patel added that the company's decision to maintain revenue investment in critical strategic initiatives, such as further developing our digital and decarbonisation capabilities, would support the delivery of "compounding growth at attractive margins for many years to come".

FTSE 100 listed Spirax Group comprises three businesses: Steam Thermal Solutions, Electric Thermal Solutions and Watson‐Marlow Fluid Technology Solutions. It operates in 66 countries and serves 110,000 customers globally.