Spirax-Sarco Engineering PLC (LON:SPX) shares fell on Tuesday as the energy services group said strengthening pound could reduce sales and profits by 3-5% if current foreign exchange rates were to continue for the rest of the year.
In the trading update, the FTSE 250-listed firm said organic sales growth in the first four months of the year has been very similar to the first four months of 2017 for both the Steam Specialities and Watson-Marlow Businesses.
READ: Spirax-Sarco eyes boost from oil price after strong end to 2017
Spirax-Sarco said on an organic, constant currency basis, group operating profit is ahead of the comparable four-month period in 2017, and the company continues to prioritise investments for growth over further margin expansions.
The global macro-economic environment for the group remains positive with Global Industrial Production growth for 2018 forecast to be very similar to that achieved in 2017.
“Provided there is no material deterioration in trading conditions the Board has confidence that the Group will make further progress in 2018,” Spirax-Sarco said.
In early morning trading, Spirax-Sarco shares fell 0.75% to 5,935.0p.