Spirax Group PLC on Thursday said its outlook for all of 2024 is unchanged, following organic sales growth in the first 10 months.
Cheltenham, Gloucestershire-based Spirax, formerly known as Spirax-Sarco Engineering, has three thermal energy and fluid technology businesses - Steam Thermal Solutions, Electric Thermal Solutions, and Watson-Marlow Fluid Technology Solutions.
Spirax said it still expects mid-single-digit percentage organic revenue growth in 2024, with an adjusted operating profit margin broadly in line with 2023’s margin of 20%, both at constant currency. The foreign exchange headwind on 2024 results will be 1% greater than expected at the time of its half-year results in August, it said.
In the 10 months to October 31, organic sales growth was ahead of growth in the first half of the year, when it was 1%. All three businesses have sales above a year before at constant currency, Spirax said.
It said this was achieved despite slowing industrial production growth globally, with particularly challenging conditions in China.
Net borrowings on October 31 were £642 million, reduced from £718 million on June 30, giving a ratio of net debt to earnings before interest, tax, depreciation and amortisation of 1.7 times, improved from 1.9 times in June.
Spirax shares were up 4.4% to 6,650.00 pence on Thursday morning in London.
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