Spirax Sarco delivers strong results
By David Wood | 9th March 2023
Gloucestershire-based engineering firm Spirax Sarco has seen its revenues and adjusted profits rise substantially.
The thermal energy management and pumping specialist, which is headquartered in Cheltenham but has offices all around the world, announced its full year results today.
Revenue for 2022 were £1,610 million, up 20% or 14% organically on the previous year, driven by volume growth and price increases to protect margins
Statutory operating profit was down 1% due to revenue investments, Electric Thermal Solutions restructure and acquisition costs, but adjusted operating profit of £380.2 million was up 12% or 7% organically
Electric Thermal Solutions organic sales were up 14% following the strategic acquisitions of Vulcanic and Durex Industries.
Nicholas Anderson, group chief executive, said: "The strong performance of our group in 2022, delivering 14% organic sales growth and 23.6% adjusted operating profit margin in a volatile geopolitical and weakening macroeconomic environment, is testament to the group's robust strategies and business model, as well as our resilience through economic cycles.
"All three businesses outperformed their markets while progressing our sustainability and inclusion agendas. In 2022, we also completed the strategic acquisitions of Vulcanic and Durex Industries that significantly enhance the scale, competitive positioning and growth prospects of the ETS business.
"We remain confident in our ability to self-generate growth and protect margins, while navigating the uncertainties ahead.
"In 2023, we anticipate mid-single-digit growth over 2022 group pro-forma sales, with mid-to-high single digit growth in steam specialties and ETS, as well as Watson-Marlow sales slightly below 2022.
" Watson-Marlow's extraordinary Covid vaccine-related demand should complete its normalisation cycle in 2023, with growth returning in the second half. Therefore, we look forward to delivering another year of overall double-digit sales growth, together with a small progression in the group's adjusted operating profit margin and improved cash conversion."
Spirax Sarco is also active in the local community and has donated a defibrillator to the Public Hearts scheme.
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