Spirax sales slippage stabilising

9th Nov 2009 07:44

Steam system specialist Spirax Sarco said the rate at which its sales are declining stabilised in the third quarter.Sales for the year to the end of October were 9% lower in constant currency terms than in the corresponding period of 2008. At the half year stage sales had been down 8% on a constant currency basis.Sales figures have enjoyed a windfall in the shape of favourable exchange rates, which have boosted revenue by 10% and also lifted the trading margin.Margin pressures have also been eased by lower raw material costs in the second half of the year and reduced operating costs.At the end of October the group had a net cash balance of £1m, even after splashing out £22m in August for MasoSine and £3m in October for Intervalf.The company’s capital expenditure remains well above recent historical levels as it continues ‘to invest in projects with good returns to deliver more efficient manufacturing processes and capacity expansion, particularly in developing markets.’