The FTSE 100-listed steam and pumps specialist reported sales of £569.7mln for the first six months of 2020, down 4% year on year compared to global industrial production which fell 7.9% over the same period.
As a supplier to sectors including hospitals, pharmaceuticals, food and drinks and utilities, all of the group’s factories and warehouses worked throughout the pandemic, with only a small effect from local shutdowns.
Group adjusted profit before taxation (PBT) fell 8% to £114.5mln, and statutory PBT fell by 2% to £106.3mln, both ahead of board expectations after what Spirax’s chief executive Nicholas Anderson said was “stronger than anticipated cost containment and efficiency improvement initiatives”.
An interim dividend of 33.5p per share was declared, an increase of 5% on a year ago.
In the results statement, Anderson added: “As hopes of a V-shaped recovery recede, we now anticipate a lower rate of economic activity in the fourth quarter. As a result, we believe that organic revenue growth in the second half of the year will be lower than we anticipated in May.”
However, the stronger profits in the first half mean the board’s expectations for the full year are unchanged, bolstered by 85% of the company’s product demand coming from clients’ operating budgets and a high proportion of our revenues from sectors less impacted by COVID-19.
Published at Wed, 12 Aug 2020 06:28:00 +0000-Spirax-Sarco turns up dial on dividend but expects tougher second half