Spirax Sarco Engineering has reported rising revenues but falling profits in a 'challenging' first half of the year.

The thermal energy management and niche pumping specialist, which has its UK headquarters in Cheltenham, saw revenues rise 17 per cent to £750.1m, driven by volume growth and price increases.

However, it reported a 7.7 per cent fall in pretax profit due partly to restructuring in its Electric Thermal Solutions business.

The company reported that order books remained at record levels and the global supply chain disruption was being managed. It announced record capital investment during the first half.

Spirax Sarco said the agreement to acquire Vulcanic for €261.7 million was set to strengthen Electric Thermal Solutions.

The board has declared an interim dividend of 42.5 pence a share, up from 38.5 pence for the first half of last year.

Commenting on the results, Nicholas Anderson, group chief executive, said: "These strong first half results were achieved against the backdrop of a weakening IP, supply chain and COVID-19 related disruption, as well as rising inflation.

"I am grateful to all colleagues for their tireless efforts to support our customers in a challenging first half. It is this excellent execution and resilience that underpins our improved full year outlook.

"Our strong profitability and robust balance sheet support our continued investment in growth, including our sustainability, digital and manufacturing initiatives.

"We recently added to our expertise by acquiring Cotopaxi into our Steam Specialties Business and will shortly welcome Vulcanic into our Electric Thermal Solutions Business. Through these actions, we are building stronger foundations for continued organic growth beyond 2022, helping our customers achieve their net zero goals while also improving the safety and efficiency of their industrial processes."