Spirax-Sarco Engineering annual profit hit by currency headwinds

Spirax-Sarco Engineering posted a drop in 2015 pre-tax profit and revenue on the back of slowing industrial production growth and currency headwinds.

In the year to the end of December, statutory pre-tax profit fell 4% to £139.7m on revenue of £667.2m, down 2% from 2014 due to the impact of a weak euro. At constant currency, however, revenue was up 2%.

Still the company lifted its dividend per share for the year to 69p from 64.5p.

Spirax said the strongest performance was seen in its Watson-Marlow Fluid Technology division, where it achieved growth in all geographic regions.

Organic sales in the steam specialties business were flat, with continued modest sales growth in EMEA and a small advance in the Americas. However, in Asia Pacific organic sales were lower, mostly due to Korea, although China was marginally ahead.

Chief executive Nick Anderson said: “The group achieved another solid result in 2015, demonstrating the continued strength and resilience of our strong direct sales business model, achieved against the background of a progressive slowing in global industrial production growth to very low levels and also further currency headwinds.

“We have continued to invest in our business for the long term and remain confident that the improvements we have made, and continue to make to our business, will enable us to outperform our markets and deliver benefits to all stakeholders."

At 1007 GMT, Spirax shares were up 0.8% to 3,267p.