Spirax-Sarco Engineering PLC (LON:SPX) shares pushed higher today after the group posted a jump in first-half profit and revenue, helped by acquisitions, sterling weakness and the strength of its operations outside the UK.
The FTSE 250-listed firm - which makes steam traps and pumps – reported a 30% leap in adjusted pre-tax profit to £99.2mln for the six months to June 30, up from £76.2mln a year earlier, as its revenue rose by 25% to £428.6mln.
READ: Spirax-Sarco steams higher on US$415mln acquisition of US thermal technology firm Chromalox
Nicholas Anderson, Spirax-Sarco’s chief executive, said: “We have seen good organic sales growth in both the Steam Specialties business and Watson-Marlow, reflecting the benefits of the successful implementation of our strategy. In addition, this year we have completed two significant acquisitions; Gestra and Chromalox.“
He added: “Currency effects have been favourable and combined with the growth from the acquisitions that were completed in 2016 and in the first half of this year, we have seen total sales and profit growth of 25% and 31% respectively in the reporting period."
The firm raised its interim dividend by 13% to 25.5p, up from 22.5p a year earlier.
In early trading, Spirax-Sarco shares topped the FTSE 250 leader board, up over 3%, or 175p at 5,750p.
In an initial note to clients, reiterating a ‘hold’ rating and 5.070p price target on Spirax-Sarco, analysts at Liberum Capital said: “Global IP is expected to moderate in H2 though FY expectations are unchanged, with the H1 margin expected to be maintained in H2.”
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