Spirax-Sarco hails 'strong' first half despite headwinds

Spirax-Sarco Engineering hailed a "strong" first half on Thursday despite headwinds, as it reported a jump in profits and said order books remain at record levels.

In the six months to 30 June, adjusted pre-tax profit was up 10% to £175.2m, on revenue of £750.1m, ahead 17% versus the same period a year earlier. On a statutory basis, however, pre-tax profit was 8% lower at £138.5m.

The interim dividend was lifted by 10% to 42.5p a share.

Spirax said all three of its businesses entered 2022 with record order books and all three have expanded their order books in the first half.

"This particularly strong demand partly reflects a higher proportion of larger project orders, which typically have longer lead times, driven by customers accelerating capital investments," it said.

Chief executive Nicholas Anderson 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."