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Spirax-Sarco full-year results boosted by acquisitions
Full-year profit at Spirax-Sarco Engineering was boosted by strong organic growth and two "significant" acquisitions.
In the year to the end of December 2017, adjusted pre-tax profit was up 29% to £229.1m on revenue of £998.7m, up 32% on the previous year. Favourable FX movements increased sales on translation by 5%, while acquisitions - Spirax bought Gestra and Chromalox last year - added 20% to revenue and 14% to profit.
Meanwhile, adjusted basic earnings per share were up 29% at 220.5p and the company declared a final dividend of 62p per share, up 16% from 2016.
Spirax said it expects a slight softening in market conditions this year, with industrial production staying positive but at lower levels than seen in 2017. Brexit negotiations and uncertainty are likely to remain a key factor affecting market conditions in the region, while political elections in Italy and ongoing political uncertainties in Germany could cause some turbulence.
Nevertheless, the company said it remains confident in its ability to deliver above market growth rates as it implements its strategy for growth and develops Gestra.
Chief executive Nicholas Anderson said: "I am very pleased with the results delivered in 2017, which again demonstrate the robustness of our strategy and strong direct sales business model. We achieved good organic growth and excluding currency and acquisition effects, maintained the organic margin.
"We are pleased to report that the two acquisitions that we made in the year have been successfully brought into the Spirax Sarco Group and are progressing to plan. We increased investment in 2017 and, during 2018, we will again prioritise accelerating revenue and capital investments for growth over further margin expansion, to ensure that we continue delivering organic sales growth that outperforms our markets. Assuming no significant deterioration in trading conditions, the board expects to make further progress in 2018."
At 0920 GMT, the shares were up 4.8% to 6,020p.