Last checked at 12 May 2009 13:00
| Spirax-Sarco Engineering plc | Charlton House Cheltenham Glos. GL53 8ER |
| News Release | Telephone: 01242 521361 Fax: 01242 581470 www.SpiraxSarcoEngineering.com |
Tuesday 12th May 2009
INTERIM MANAGEMENT STATEMENT
Spirax-Sarco Engineering plc issues the following Interim Management Statement in respect of the four month period ended 30th April 2009, ahead of its Annual General Meeting today at 2.00pm.
Trading
We highlighted in our preliminary results announced on 9th March that we are in a very uncertain and unpredictable economic environment. Indeed, Industrial Production indices have deteriorated sharply around the world and market conditions remain uncertain, with customer purchasing patterns not yet stabilising and some volatility month-to-month. Against this background, year-to-date through April, sales were only 7% lower than last year at constant currency, against a comparatively strong start and first half year in 2008.
We are making good progress in implementing previously announced cost reductions that will bring overheads more into line with underlying sales, whilst not impairing our ability to invest further in certain areas of the business. As of the end of April, our headcount is over 5% lower than in September 2008 and, as anticipated, we will begin to see cost benefit in the coming months and through the second half of the year.
Financial position
There has been no material change in the financial position of the Group during the period and we continue to operate with a strong balance sheet. At 30th April 2009, the Group's net cash balance was £16m compared with £17m at the start of the year. Under IAS19, net finance income in respect of post-retirement benefits is lower this year, as explained in the 2008 Annual Report.
Corporate Developments
Our Chairman, Michael Townsend will retire from the Board on 30th June 2009. Mike has served as a director for twelve years and most recently as Chairman for the past four years. We thank him for the significant contribution he has made to the business. Bill Whiteley, who has served as a director for nearly seven years, will become Chairman on 1st July. Bill retired as Chief Executive Officer of Rotork plc last year and also serves as a non-executive director of Brammer plc and Renishaw plc, and is Chairman of the British Valve and Actuator Association.
Outlook
We are not able to establish a definitive trend in market conditions and we have not yet seen sufficient evidence to suggest that our business levels have stabilised. We continue to monitor closely market activity and benefit from our longstanding relationships with individual customers through our worldwide direct field sales force. We expect that sales and profit will benefit from more favourable exchange rates this year. The Group has a strong balance sheet, outstanding niche businesses, historically resilient business model and an experienced management team that is passionate about charting the proper course for the Group to emerge even stronger when the recovery happens. The Board remains confident in the prospects for the Group.
Enquiries:
Mark E Vernon, Chief Executive
David Meredith, Director Finance
Tel: 01242 535236
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 4,200 people, of whom 1,200 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