Spirax-Sarco eyes return to growth in 2024

16th Nov 2023 09:02

(Sharecast News) - Engineering firm Spirax-Sarco lowered its full-year sales guidance on Thursday but said a return to growth was expected to take place in 2024.

Spirax-Sarco said it anticipates full-year 2023 sales to be 1-2% lower compared to 2022 pro-forma sales of £1.73bn, while adjusted operating profit margins would be "slightly improved" on the 20.2% delivered in the first half.

In the four months ended 31 October, Spirax-Sarco said sales growth for all three of its business units was below internal expectations, with year-to-date group revenues "marginally below" the corresponding prior year period. Currency effects were also said to have had an adverse impact on both sales and adjusted operating profits.

Looking ahead, the FTSE 100-listed firm continues to anticipate a recovery in demand in both its biopharm and semicon WFE sectors during 2024.

"While it is always challenging to predict the precise timing and scale of demand changes, we remain confident in our continued ability to drive growth above IP," said Spirax-Sarco. "Therefore, while it is too early to provide guidance for 2024, we do anticipate a return to revenue growth and improvement in adjusted operating margin in the coming year."

As of 0900 GMT, Spirax-Sarco shares were up 1.95% at 9,112.0p.

Reporting by Iain Gilbert at Sharecast.com