Spirax-Sarco Engng posts increase in half-year profits

8th Aug 2013 09:01

Spirax-Sarco Engng, which manufactures boiler and pipeline control valves for steam heating and process plants, posted an increase in half-year profits as sales grew across all segments.Adjusted pre-tax profit rose 18% to £68m in the six months to end of June as revenues grew 6.0% to £331.6m. Adjusted operating profit increased by 17% from to £68.1m, driven by a strong profit rebound in Europe, Middle East and Africa (EMEA).Operating profit rebounded by 36% at constant currency in EMEA due to the benefit of the European cost saving actions implemented in the second half of last year, combined with a sales increase of 3.0%. The group also benefited from a jump in adjusted operating margins, up 200 basis points to 20.6%.The firm raised its dividend by 13% to 18p.Mark Vernon, Group Chief Executive, said: "Sales were up across each of our segments, although we note continuing difficult market conditions in most of our mature markets. Although we anticipate continued sluggish economic conditions in most of our markets and a challenging fourth quarter comparison, the board expects the group to make good progress in 2013."RD