Spirax-Sarco Engineering PLC said it expects to achieve good progress for the full year, given continued beneficial exchange rates and no significant deterioration in trading conditions in its market.
In a trading statement covering the four month period to October 31 2008, the steam control and peristaltic pumping group said that, as expected, it has begun to see some moderation in the pace of growth in demand from its customers, particularly in Continental Europe, although the overall organic sales growth trend in the first half year has broadly continued through October.
Despite the Korean Won weakening sharply, currency effects have continued to move in its favour and have added 8 percent to group revenues this year, with a larger benefit to operating profit.
Spirax-Sarco said it continues to operate with a strong balance sheet. It a net cash balance at June 30 2008 of £12million, despite having made an initial £11 million payment in February for the acquisition of Flexicon. It still expects capital expenditure to be higher than normal this year and in 2009.