Spirax profit to beat forecasts

8th Jan 2010 07:46

Spirax-Sarco, the steam valve and pump maker, expects pre-tax profits for 2009 to be above the top of the current range of analysts' forecasts.Sales for the year increased 3% from 2008, including a small contribution from acquisitions and an exchange benefit of 10%.Trading margins in the second half year benefited from lower material costs and management action to reduce operating costs, in addition to the usual positive seasonal second half bias from slightly higher sales volume. Trading margin for the full year, excluding headcount reduction costs, is expected to be broadly similar to the 17.1% achieved in 2008. Total headcount reduction costs to be taken in 2009 are now expected to be around £11m.In 2010, the group expects a small currency headwind and also plans to reinvest some of the cost savings in stepping up its investment in product development, expanding its market penetration and improving operating efficiency.