Spirax Sarco reports good trading with sales up modestly

Cheltenham-headquartered Spirax-Sarco Engineering PLC said it had a "good performance" in the four months to October, with organic sales up "modestly" on the first half.

Read our interview with CEO Nick Anderson in the November issue of Business & Innovation Magazine

For the four months to October 31, the company said that in Europe, Middle East & Africa, organic sales growth was slightly higher than in the first half of the year, benefiting from a strong order book at the beginning of the period.

Organic growth in Asia Pacific "continued to be strong" with good performances from China and Australasia, Spirax-Sarco said.

Meanwhile, organic growth in the Americas also continued to be good.

"Consistent with the first half-year performance, group operating profit is ahead of the comparable ten-month period at constant currency, both on an organic basis and when the effects of the acquisitions are included," the firm added.

Spirax-Sarco acquired Gestra and Chromalox during the period, with both of them integrating well.

Looking ahead, the company said it continues to invest towards supporting future growth.

"Currency effects are more muted this year than in the previous two years, and consistent with what we reported at the half-year remain a headwind," Spirax-Sarco added.

"If spot rates at October 31 prevail for the remainder of the year, the negative impact of currency on sales and operating profit for the full year, compared with the full year 2017, would be slightly less than the 3% and 5% indicated at half-year. Movements in exchange rates are often volatile and unpredictable, therefore the actual impact could be significantly different."

The company said it expects to publish its full-year results on March 7.

Spirax-Sarco shares were trading up 2.5% at 6,755.00 pence each.