Business
Trading update
Trading update.
About this update from Spirax Group Plc.
[{"type":"text","content":"\n RNS Number : 8527O Spirax-Sarco Engineering PLC 06 July 2010 \n \n\n \nSpirax-Sarco Engineering plc\nTuesday 6th July 2010 \n \nTRADING UPDATE\n \n \nSpirax-Sarco Engineering plc, the world leader in the control and efficient use of steam and in peristaltic pumping, issues the following update in respect of its trading for the six months ended 30th June 2010. Results for the first half-year are expected to be announced on 24th August 2010.\n \nSince the AGM, trading conditions continue to be positive and sales for the first half-year were ahead 8% at constant currency, including a 2% contribution from acquisitions; also, the order book increased. Growth continues to be led by Watson-Marlow Pumps and in the steam business by the Americas and Asia Pacific, with EMEA mixed but overall flat. Exchange movements have been favourable and added 2% to sales on translation in the first half-year versus average exchange rates in the comparable period last year. \n \nAdjusted operating profit margin1 shows a strong improvement over the 15.0% in the first half of 2009 and is expected to be above 19% for the first half of 2010. We have benefited from operational gearing from the increase in sales, last year's cost reduction measures, small exchange gains and a favourable product mix. Material costs have also been favourable but are rising and we anticipate this impacting the second half of the year. We are also increasing our investment in new product development and in market development to enhance our future growth prospects.\n \nWe continue to operate with a strong balance sheet and net cash balances at 30th June 2010 were £18m. As we have previously indicated, capital investment for this year is expected to be at a high level as we progress several major manufacturing projects, including our new plant in China that was opened last week and the consolidation onto one manufacturing site in Cheltenham.\n \n \n1 The adjusted operating profit margin noted above excludes the amortisation of acquisition-related intangible assets and an £8m exceptional revaluation gain following the 25th May 2010 acquisition of our partners' 51% shareholding in our Mexican business.\n \n \nEnquiries:\nMark E Vernon, Chief Executive\nDavid Meredith, Dire...