Full steam ahead as Spirax announces special divi

8th Mar 2011 08:27

Tuesday has been a day for special dividends and though the 25p special from Spirax Sarco may not match the one-off payment from Antofagasta, the steam trap and pump maker's shareholders are unlikely to complain as the shares hit a 52-week high.On top of the 25p special dividend the full year dividend for 2010 has been cranked up 19% to 43.0p from 36.1p, as the company announced record sales and profits."Generally, where net cash resources exceed our expected future requirements, we will look to return cash to shareholders," the company pledged.Revenue in 2010 rose 14%, or 11% using constant exchange rates (CER), to £589.7m from £518.7m the year before.Growth was led by emerging markets and the Watson-Marlow pumps operation.Adjusted profit before tax surged 35% (CER: 29%) to £121.6m from £90.2m in 2009. Statutory pre-tax profit jumped 62% to £123.5m from £76.4m; the 2009 figure included, among other things, an £11.4m one-off charge for headcount reduction costs."Given no renewed market weakness or significant negative currency movements, the board is confident in the prospects for the group this year," said Mark Verson, Spirax Sarco's chief executive."2011 has started well, with good organic sales growth in the first two months, although this compares with a relatively slow start to 2010 and we anticipate the sales comparisons becoming more challenging as the year progresses," the company said.