Spirax-Sarco Engineering PLC (LON:SPX) reported strong growth in first-half operating profit, driven by good performances from its Stream Specialities and Watson-Marlow businesses, and said its full-year expectations remain unchanged.
The company posted an operating profit of £125.7mln, up 7% year-on-year, on revenue 7% higher at £547.6mln during the first six months of 2018.
READ: Spirax-Sarco Engineering expects currency headwinds to reduce sales and profits
The FTSE 250-listed group said favourable currency tailwinds, experienced following the UK's decision in June 2016 to exit the European Union, became a headwind in the period as sterling strengthened against the basket of currencies that it trades in. This led to a 5% hit from currency movements, it said.
Spirax, which hiked the interim dividend by 14% to 29p, said the integration of the two significant acquisitions it made in 2017 - Gestra and Chromalox – was progressing to schedule and their overall performance continues to be in line with its plans.
"We are very pleased to report strong organic sales growth of 7% in the first half, ahead of global industrial production growth, and organic operating profit growth of 15%,” said Spirax CEO Nicholas Anderson.
“The strong first half organic sales growth was in line with our expectations, and for the second half comparisons with the prior year will be tougher. Overall, our full-year expectations remain unchanged."