Spirax-Sarco Engg Says No Change To 2022 Guidance For Adjusted Operating Profit

U.K.-based thermal energy and niche pumping specialist, Spirax-Sarco Engineering plc, (SPX.L) on Thursday said that its 2022 guidance for adjusted operating profit, excluding contributions from the recent acquisitions, remains unchanged.

The company said that in the four months ended 31st October, it recorded robust trading despite economic headwinds. Group organic sales grew strongly in the period with orders in Steam Specialties, Electric Thermal Solutions and Watson-Marlow's Process Industries remaining above expectations.

Revenues in the second half of the year are trending slightly above the typical 52% of full year revenues. Consistent with the four months to the end of October, the company anticipates the full year adjusted operating profit margin to be below that of the first half of the year.

Currency effects had approximately a 3.5% positive impact on both sales and operating profit versus the comparative prior period due to the sterling weakening against the basket of trade currencies. At current exchange rates, the positive impact is seen rising to 4% for the full year of 2022.

On the basis of current economic forecasts, the company anticipates at least mid-single-digit organic sales growth, together with a small operating margin progression in 2023.

Shares of Spirax-Sarco Engineering closed Wednesday's trading at 11,600 pence, down 160 pence or 1.36 percent from the previous close.

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