Spirax-Sarco Engineering plc has reported earnings results for the year ending December 31, 2023. For the full year, the company reported sales increased by 4.5% to £1,682.6 million compared to £1,610.6 million a year ago.

Net income was £183.6 million compared to £224.7 million in 2022.

Operating costs rose 8.2% to £1.40 billion from £1.29 billion. The firm reported that the adjusted operating profit fell 8% to £349.1 million from £380.2 million, while the operating profit margin fell to 20.7% from 23.6%.

Pre-tax profit fell 21% to £244.5 million in 2023, from £308.1 million the previous year.

Basic earnings per share from continuing operations was £2.495 compared to £3.051 last year. The total 2023 dividend increased to 160.0p per share from 152.0p with an increased final dividend of 114.0p, up from 109.5p (2022).

The firm said a "challenging trading environment" impacted 2023 earnings but was well positioned for a return to growth in 2024.

Nimesh Patel, Spirax Group's newly appointed chief executive, said: "Our financial results in 2023 were impacted by a more challenging trading environment than we had anticipated at the start of the year, with several external headwinds to our highest margin businesses. An early focus on restructuring to right-size capacity, together with cost containment actions, supported our adjusted operating profit margin. We are well-positioned to return to revenue and profit growth in 2024.

"It is a privilege to lead Spirax Group, working alongside outstanding people to continue building on the strengths of our unique business model. We have a long track record of navigating volatile macroeconomic conditions to deliver growth ahead of industrial production. Our decision to maintain revenue investment in critical strategic initiatives, such as further developing our digital and decarbonisation capabilities, will support the delivery of compounding growth at attractive margins for many years to come."

Spirax-Sarco expects to return to high-single-digit organic sales growth this year, and for its adjusted operating profit margin to achieve low double-digit growth.

Spirax-Sarco also said adjusted operating profit will be more weighted than usual towards the year's second half, in part reflecting "strong demand growth".

Headquartered in Cheltenham, Spirax-Sarco Engineering plc has rebranded as Spirax Group and is a world leader in steam, fluid monitoring and control equipment.