Cheltenham-based Spirax-Sarco has seen its profits dip by 7% for the first half of 2023 – but the thermal energy management leaders have pinned the loss on enterprise resource planning write-down and restructuring.

At the same time, the FTSE-100 engineering company saw sales rise by 13% to £850.8m, which it ascribed to a "currency tailwind" of 1.5%, while factoring in a 10% dent from the first-time contribution of the acquisitions of Vulcanic and Durex Industries.

Key aspects of the results include:

● Revenues up 13% or 2% organically.

● Strong growth in Steam Specialties and ETS offset by lower Biopharm sales in Watson-Marlow.

● Statutory operating profit down 7% and margin down 340 bps due to ERP write-down and restructuring.

● Vulcanic and Durex Industries integration "progressing very well".

● Watson-Marlow sales down 21% organically; adjusted operating profit lower due to operational gearing.

Nicholas Anderson, Group CEO, said: "We achieved first half results that are broadly in line with our expectations, against the backdrop of continued destocking in the Biopharm and Semicon WFE sectors, as well as softening Industrial Production growth. I am grateful to all our colleagues for their continued support of our customers' critical industrial processes against this challenging backdrop.

"The underlying demand for Watson-Marlow products and solutions remains as robust as in pre-pandemic periods, albeit the short-term headwind from Biopharm destocking is now expected to continue into 2024, with Watson-Marlow's competitive strengths and market-leading capabilities to service that demand remaining unchanged. Similarly, we remain confident in the underlying growth drivers of the Semicon WFE sector."

He added he was confident in the Group's strength and ability to navigate "current macroeconomic uncertainty and short-term headwinds", while continuing to drive strategic progress.

"Our robust business model, diverse reach across end-markets and geographies and clear opportunity to accelerate the decarbonisation of industrial processes underpin our confidence in the medium-term outlook."

● Spirax-Sarco's results today follow on the heels of an announcement on Tuesday for change at the top of the company. Read the full story here. With a ranking of 13th in Punchline's latest top 100 county employers (see the autumn 2022 Punchline-Gloucester.com magazine), the company provides 1,100 jobs and is a worldwide leader in industrial and commercial steam systems, advanced electric thermal solutions, pumps and fluid path equipment for industrial and commercial settings.