Operating profit fell by more than 300% last year at engineering company Spirax-Sarco Limited, which is a key component of Spirax Group PLC.

The company, based in Cheltenham, released its 2023 accounts yesterday (Sept 24).

The annual report shows a drop in profit of £22.1million which it said was due to a one-off impairment charge. The £13.5m payment related to a global ERP programme implementation within the Steam Thermal Solutions business.

Turnover at the company also dropped £13.51million (9.2%) which the report said was predominantly as a result of the Japanese branch being transferred to a new Japanese legal entity Spirax-Sarco Godo Kaisha.

Spirax-Sarco Limited is part of FTSE100 Spirax Group which employs around 9,200 people in 68 countries worldwide.

Spirax Group has three sites in Cheltenham, including the Grade II listed Charlton House in Charlton Kings that has been the company's headquarters for almost 80 years.

Last year staff costs increased by £3.15m and other operating charges increased by £6.16m.

The transfer to the 100% owned subsidiary on January 4, 2023 was to reduce administration and gain more benefit from being a wholly Japanese company.

Staff costs increased by £3.15m and other operating charges increased by £6.16m.

The company said this reflected a "continued commitment to new product development as well as digital and sustainability initiatives across the Steam business."

It said it will continue to invest in its manufacturing processes and research and development to continue to meet global demand from the Spirax-Sarco Group.

The report added: "In the UK the company will continue to consolidate its position as the market leader of steam solutions through sales-focused initiatives and acquisition where opportunity arises."

On August 8 Spirax Group reported group revenue was up 1% organically, with Electric Thermal Solutions up 5% organically and Watson-Marlow sales up 3% organically.