Spirax-Sarco Engineering revenue grows 17% on volume growth and price increases

Spirax-Sarco Engineering shares gained 0.4% to 12,055p in late morning trading on Thursday following a 17% revenue growth to £750.1 million in HY1 2022 against £643.7 million the last year.

Spirax-Sarco Engineering linked its revenue increase to volume growth and price increases.

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However, the firm reported a 7% operating profit drop to £142.1 million compared to £153.6 million and a 5% operating margin fall to 18.9% from 23.9%.

Spirax-Sarco Engineering highlighted an 8% pre-tax profit fall to £138.5 million against £150 million, as a result of restructuring its Electric Thermal Solution (ETS) business.

Meanwhile, the company announced an 11% basic EPS decrease to 131.8p from 147.6p in the previous year.

The engineering firm noted a £202.7 million net debt against £192.8 million year-on-year.

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“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,” said Spirax-Sarco Engineering CEO Nicholas Anderson.

“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.”

Spirax-Sarco Engineering hiked its dividend 10% to 42.5p per share compared to 38.5p for HY1 2022.

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