Spirax Sarco steaming ahead

23rd Aug 2011 08:10

Steam trap and pump maker company Spirax Sarco has reported mixed results in its half year report. While revenue was up 11% on a like-for-like basis from £277m to £307.7m, pre-tax profit took a small hit, down 1% to £60.8m from £61.3m last year. Adjusted profit before tax, which excludes certain exceptional items, rose 15% to £63.0m from £54.9m the year before. "In July, demand grew at mid-single digits and sales growth continued at a slightly reduced pace than in the first half of the year," the group said.The interim dividend was increased more or less in line with the growth in headline profit, up 14% to 14.8p from 13.0p at the interim stage in 2010.Net cash balances decreased by £22.2m, but the company said this reflected the usual seasonal pattern, as well as high capital expenditure and the increase in dividend payments. The net cash balance at half year end was £12.2m (31 December 2010: £34.4m).Mark Vernon, group chief executive, said: "Our continued investments in geographic market penetration and new product development have contributed to the good organic sales growth of 10% in the first half of the year and to market share gains and expansion of our addressable markets. "Rates of industrial production growth returned to more normal levels in the first half of the year, with the pace of economic growth slowing from the rapid expansion of 2010. "If the growth rate of the world economy slows, we expect to be resilient but not immune. Given no overall deterioration in our markets or significant adverse currency movements, the board remains confident in the prospects for the group this year and the progress we expect to achieve." Investors were keen to focus on the positives, with the share price heading up 1.26% to 1,686.00p at 08:30. NR