Spirax Group Plc (LON:SPX) has announced its 2024 Half Year Results.
Six months ended 30 June
| Statutory (£m/p) | 2024 | 2023 | Reported |
| Revenue+ | 827.0 | 850.8 | (3)% |
| Operating profit | 147.2 | 132.2 | 11% |
| Operating profit margin | 17.8% | 15.5% | 230bps |
| Profit before taxation | 124.8 | 114.0 | 9% |
| Basic earnings per share | 123.8 | 112.5 | 10% |
| Dividend per share | 47.5 | 46.0 | 3% |
| Adjusted (£m/p) | 2024 | 2023 | Reported | Organic* |
| Revenue+ | 827.0 | 850.8 | (3)% | 1% |
| Adjusted operating profit | 160.3 | 171.7 | (7)% | (1)% |
| Adjusted operating profit margin | 19.4% | 20.2% | (80)bps | (30)bps |
| Adjusted profit before taxation | 137.9 | 153.5 | (10)% | |
| Adjusted basic earnings per share | 137.2 | 155.2 | (12)% | |
| Adjusted cash conversion | 53% | 48% | 500bps |
| ● | Group revenue up 1% organically, impacted by weak macroeconomic environment in key markets |
| ● | Global IP+++ was weak in the first half, with growth of 0.8% excluding China |
| ● | STS++ sales declined by 1% organically, against a strong comparator in the first half of 2023 |
| ● | ETS++ sales up 5% organically, supported by operational progress; demand remains stable in Semicon** |
| ● | Watson-Marlow sales up 3% organically; early signs of improving demand in Biopharm*** |
| ● | Adjusted operating profit margin reflects progress in ETS more than offset by lower STS margin |
| ● | Statutory operating profit and margin higher as 2023 impacted by restructuring and write-down charges |
| ● | Material currency headwinds to revenue (4%) and adjusted operating profit (6%) in the first half |
| ● | Adjusted cash conversion 53% in the first half reflecting usual seasonality |
| ● | Interim dividend up 3% to 47.5 pence |
Nimesh Patel, Spirax Group Chief Executive Officer, commenting on the results said:
“Against the backdrop of a weak macroeconomic environment in some of our key markets and a strong currency headwind, first half results were slightly below our expectations. We expect stronger growth in the second half, supported by higher IP, ongoing operational improvement in ETS and cost discipline. While we have seen early signs of improving Biopharm demand, we do not anticipate a meaningful recovery until late 2024.
“Following my first six months as CEO, visiting our operations, colleagues and customers, I am confident in the fundamental quality of our three Businesses. We are delivering early operational improvements and will increase the pace at which we address these within our Group. We are also focusing our investments to capitalise on global trends and high growth markets, which will accelerate our long term organic growth. I thank my exceptional colleagues for their support and look forward to evolving and strengthening Spirax Group together.”
+ ‘Sales’ is used interchangeably with ‘revenue’ when describing the financial performance of the Business
++ ‘STS’: Steam Thermal Solutions; ‘ETS’: Electric Thermal Solutions
+++ ‘IP’: Industrial Production growth
* Organic measures are at constant currency and exclude contributions from acquisitions and disposals
** ‘Semicon’ refers to ETS sales to the Semiconductor Wafer Fabrication Equipment sector
*** ‘Biopharm’ refers to Watson-Marlow sales to the Pharmaceutical & Biotechnology sector
Audio webcast
The results presentation will be available as a live webcast at 9.15 am on Spirax Group’s website at www.spiraxgroup.com or via the following link: https://edge.media-server.com/mmc/p/7hk59624
A recording will be made available on the website shortly after the meeting.
Conference call registration
https://register.vevent.com/register/BI4d25763b07cd432092ff7be190a28dbd
