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Gloucestershire Business News

Revenue soars to more than £1billion at Cheltenham-based firm

Revenue at one of Cheltenham's biggest private employers has soared through the £1billion barrier.

In their end of year results for 2018, Spirax-Sarco Engineering PLC posted revenues of £1.153billion, a 15 per cent increase on last year and seven per cent increase in organic sales growth.

Spirax-Sarco have their international headquarters on Cirencester Road in Cheltenham and a manufacturing base on the Kingsditch Retail Park, employing approximately 1,100 people in the town.

The group is now made of three subsidiaries following the 2017 acquisition of Gestra and Chromalox - with the company reporting that the integration of the two new companies was on track.

The group also sold one of its subsidiaries in 2018, earning €59.0 million (£52.3million) on a debt-free, cash-free basis for HygroMatik GmbH, who were sold to Carel Industries S.p.A.

In a statement released with the annual results, group chief executive Nicholas Anderson said all three businesses had performed well in 2018. And that a repeat was expected in 2019's results.

"We have seen strong organic sales growth across all three businesses, reflecting the benefits of the successful implementation of our strategies," he said.

"The integration of the Gestra and Chromalox acquisitions progressed to schedule and their overall performance continues to be in line with our expectations.

Nicholas Anderson, group CEO at Spirax-Sarco

"In 2019 we will continue to embed our strategies that enhance our ability to self‐generate growth, in order to mitigate the effects of slowing global industrial production and increased market uncertainties.

"Assuming no significant deterioration in trading conditions, the Board expects to make further progress in 2019."

Profits were also up with a 12 per cent increase in adjusted operating profit to £264.9million, with the company reporting "a net six per cent positive impact from the full year effect of acquisitions and disposal."

Earnings per share were also up, by 13p to 250.0 pence (220.5p in 2017) and the board has proposed a final dividend of 71p per share for 2018, up from 62p in 2017.

The total amount paid in dividends in 2018 was £67.3 million, above the £58.4 million paid 12 months ago.

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