Spirax Sarco reports strong first half despite headwinds

First half revenues were up 17 per cent at Cheltenham headquartered Spirax-Sarco Engineering, the thermal energy management and niche pumping manufacturing company at £750.1 million, up from £643.7 million the previous year.

The company said its order book remains at record levels, despite challenging global supply chains and reported a record capital investment during the first half of the year.

Nicholas Anderson, Group Chief Executive, commenting on the results said: "These strong first half results were achieved against the backdrop of a weakening IP, supply chain and COVID-19 related disruption, as well as rising inflation.  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.  We recently added to our expertise by acquiring Cotopaxi into our Steam Specialties Business and will shortly welcome Vulcanic into our Electric Thermal Solutions Business.  Through these actions, we are building stronger foundations for continued organic growth beyond 2022, helping our customers achieve their net zero goals while also improving the safety and efficiency of their industrial processes."

In July, the company announced that it had signed a binding agreement to acquire the Vulcanic Group of Companies from Qualium, a French private equity company, for €261.7 million (£225.5 million).

While the transaction will require regulatory approvals in France and Germany, these regulatory approvals and completion are expected during the third quarter of the year.

Vulcanic is a European industrial electric heating group and is the largest supplier in Europe of bespoke industrial electric heating solutions.  With its headquarters In Paris, it has 10 manufacturing facilities worldwide and more than 700 employees.