Spirax-Sarco beats projected performance
By Rob Freeman | 12th August 2020
Sales and profits fell less than expected for Spirax-Sarco Engineering in the first six months of the year - but it has warned of tough end to 2020.
The Cheltenham-based thermal engineering and niche pumping specialists reported revenue of £569.7million in the six months to June 30, down four per cent from the same period last year.
Operating profit was down eight per cent to £119million with an adjusted profit taxation also falling eight per cent to £114.5million.
Group chief executive Nicholas Anderson said: "We delivered a resilient trading performance, which although weaker than 2019 was stronger than originally feared.
"Sales performance in the second quarter was in line with our expectations at the time of our AGM statement in May with adjusted operating profit ahead due to stronger than anticipated cost containment and efficiency improvement initiatives."
He continued: "As hopes of a V‐shaped recovery recede, we now anticipate a lower rate of economic activity in the fourth quarter.
"As a result, we believe that organic revenue growth in the second half of the year will be lower than we anticipated in May.
"Due to the operating profit being stronger than forecasted in the first half, our expectations for the full year adjusted operating profit remain unchanged."
The group said the results allowed it to lift some temporary cost containment measures introduced in April, including voluntary pay reductions, earlier than planned this month.
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