Spirax-Sarco Engineering PLC Strong organic growth and full-year contributions from acquisitions

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Spirax-Sarco Engineering PLC (LON:SPX), today announced final results.

HIGHLIGHTS

Adjusted*	2018	2017	Reported	Organic⁺
Revenue	£1,153.3m	£998.7m	+15%	+7%
Adjusted operating profit*	£264.9m	£235.5m	+12%	+12%
Adjusted operating profit margin*	23.0%	23.6%	-60 bps	+120 bps
Adjusted profit before taxation*	£254.6m	£229.1m	+11%
Adjusted basic earnings per share*	250.0p	220.5p	+13%
Dividend per share	100.0p	87.5p	+14%
Cash conversion**	91%	86%

*All profit measures exclude certain items which totalled £34.2 million for the year ended 31^st December 2018, as set out and explained in the Financial Review and in Note 2.

**Cash conversion measures the percentage of adjusted cash from operations to adjusted operating profit as explained in the Financial Review and in Note 2.

⁺ Organic percentage growth measures are at constant currency and exclude contributions from acquisitions and disposals.

Statutory	2018	2017	Reported
Revenue	£1,153.3m	£998.7m	+15%
Operating profit	£299.1m	£198.9m	+50%
Operating profit margin	25.9%	19.9%	+600 bps
Profit before taxation	£288.8m	£192.5m	+50%
Basic earnings per share	303.1p	214.4p	+41%

· Revenue growth of 15%, organic sales growth of 7%

· Adjusted operating margin of 23.0%, down 60 bps; organic margin up 120 bps to 25.2%

· Strong organic sales growth in Steam Specialties and Watson-Marlow

· Gestra and Chromalox performing well

· Net debt of £235.8 million as at 31st December 2018, 0.8x EBITDA

· Full Year dividend increased by 14%

Nicholas Anderson, Spirax-Sarco Group Chief Executive, commenting on the results said:

“We are very pleased to report strong organic sales growth of over 7% in 2018, ahead of global industrial production growth, and organic adjusted operating profit growth of over 12%. We have seen strong organic sales growth across all three businesses, reflecting the benefits of the successful implementation of our strategies. The integration of the Gestra and Chromalox acquisitions progressed to schedule and their overall performance continues to be in line with our expectations. In 2019 we will continue to embed our strategies that enhance our ability to self-generate growth, in order to mitigate the effects of slowing global industrial production and increased market uncertainties. Assuming no significant deterioration in trading conditions, the Board expects to make further progress in 2019.”

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