Spirax Sarco reiterates guidance for full-year operating profits

Spirax Sarco reported continued strong underlying demand for over the four months ending in October, despite a weakening outlook for global industrial production.

Orders in Steam Specialties, Electric Thermal Solutions and Watson-Marlow's Process Industries remained above management's expectations when it published its first half numbers in August.

That led the thermal energy and niche pumping specialist to reiterate its full-year 2022 guidance for adjusted operating profits excluding acquisitions.

In a trading statement for the four-month period, Spirax chief operating officer and finance director also highlighted the manufacturer's "proven resilience" in weaker economic climates and "well-established" price management practices.

Currency translation boosted sales and oeprating profit by 3.5 percentage points over the four months and were seen adding four points on a full-year basis if then current exchange rates held.

During the period, Spirax aqcuired two companies, Vulcanic and Durex.

The first purchase saw Spirax Sarco's net debt, excluding leases, increase from £203m as of 30 June to £391m, while after the latter the company's net debt-to-earnings before interest, taxes, depreciation and amortisation was seen rising to near 1.5 times in pro-forma terms.

Spirax Sarco was due to publish its full-year 2022 results on 9 March.