Spirax-Sarco Engineering (LSE:SPX) PLC maintained its guidance for full-year 2022 adjusted operating profit (excluding acquisitions) but warned of falling margins as it updated investors on trading.
The group forecast close to 15% organic growth for Watson-Marlow's sales to the pharmaceutical and biotechnology sector, as well as rises “very significantly” above global industrial production growth forecasts for the remainder of the group's organic revenues.
Overall, including currency and excluding acquisitions, revenues in the second half of the year are trending slightly above the typical 52% of full-year revenues, the company said.
But it did warn that the group's full-year adjusted operating profit margin would be below that seen in the first half of the year.
“We remain confident in the group's proven resilience in a weakening macro-economic climate, underpinned by our strong order book carried forward and our well-established price management practices to offset inflationary cost pressure.”
“On the basis of current economic forecasts, we anticipate at least mid-single-digit group organic sales growth, together with a small operating margin progression,” the company stated.