Steam valve specialist Spirax-Sarco PLC (LON:SPX) got a big tailwind from sterling’s weakness over the past six months and is set another handy boost this year.
Annual underlying profits jumped 18% to £180mln, while sales rose 14% to £757mln with a major chunk of the increase down to currency movements as organic sales rose by 4%.
“In 2017, we could see a further favourable benefit from foreign exchange as 2017 will include a full year of post-Brexit referendum currency rates,” the steam specialist said.
“As a guide, if current exchange rates were to prevail for the remainder of the year, revenues would be 6% higher due to translation.”
Nicholas Anderson, chief executive, said margins rose to record levels over the past year.
“We achieved good organic growth and expanded our margin to a record high, against a backdrop of very low global industrial production growth that improved in the latter part of the year.
“Assuming no significant deterioration in trading conditions, the board expects to make further progress in 2017."
The dividend for the year rises by 10%. Shares eased 1% to 4,575p.