Last checked at 20 May 2014 07:00
News Release
Tuesday 20th May 2014
INTERIM MANAGEMENT STATEMENT
Spirax-Sarco Engineering plc, the world leader in the control and efficient use of steam and in peristaltic pumping, issues the following Interim Management Statement in respect of the period from 1st January 2014 to 19th May 2014, ahead of its Annual General Meeting ("AGM") today at 2.00pm.
Trading
Global economic conditions have shown little change of direction in the period since our last outlook statement in early March. 2014 has started in line with our expectations, which remain unchanged for the full year.
For the four months ended 30th April 2014, organic sales increased by nearly 4% and acquisitions added nearly 1%. Currency headwinds reduced sales on translation, leaving reported sales marginally lower than the prior year. Sales growth was strongest in the Americas, with increases in both North and Latin America. Watson-Marlow also started well, including a contribution from Bio Pure that has made an excellent start, and modest growth continued in our steam specialties business in Europe, Middle East and Africa ("EMEA"). In Asia Pacific, we built a larger project-based backlog than in the comparable period, leading to flat organic sales and supportive of relatively stronger second half sales in that region.
Group operating profit was ahead of the comparable period in 2013 both on a constant currency and on a reported basis, largely reflecting the contribution from higher sales and relatively flat material input costs.
Financial position
The Group remains highly cash generative and maintains a strong balance sheet, with the net cash balance increasing from £16 million at 31st December 2013 to £25 million at 30th April 2014, despite the £8m outflow in respect of the acquisition of Bio Pure in January, the adverse impact of currency movements on translation and the usual seasonal cash outflow pattern. If approved at the AGM, the final dividend of 41p per share in respect of 2013, totalling £31 million, will be paid on 30th May 2014. There has been no material change in the financial position of the Group during the period and the principal risks and uncertainties remain as set out on pages 26 and 27 of the 2013 Annual Report.
Outlook
We continue to assume that our markets will exhibit low levels of growth, in line with modest overall improvement in Industrial Production growth through the course of 2014. Although strong currency headwinds persist, we remain focused on our strategic priorities to create our own growth, which, together with our fundamental strengths, gives the Board confidence that the Group will make further progress in 2014.
Spirax Sarco will publish its half-year results on 7th August 2014.
Enquiries:
Nick Anderson, Chief Executive
David Meredith, Director Finance
Tel: 01242 535234
About Spirax Sarco
Spirax-Sarco Engineering plc is the world leader in both steam system management and peristaltic pumping. The Company provides a broad range of fluid control products, engineered packages, site services and systems expertise for its diverse range of over 100,000 industrial and institutional customers. The Company helps its customers to optimise production capacity, reduce energy costs and emissions, improve product quality and enhance the safety of their operations. Spirax Sarco is headquartered in Cheltenham, England, has strategically located manufacturing plants around the world and employs approximately 4,700 people, of whom around 1,300 are direct sales and service engineers. Its shares have been listed on the London Stock Exchange since 1959 (symbol: SPX). Further information can be found at www.spiraxsarcoengineering.com