Interim Management Statement

RNS Number : 2867G

Spirax-Sarco Engineering PLC

10 May 2011

 



Spirax-Sarco Engineering plc	Charlton House Cheltenham Glos. GL53 8ER
News Release	Telephone:  [phone] Fax:  [phone] www.SpiraxSarcoEngineering.com

Tuesday 10^th May 2011

INTERIM MANAGEMENT STATEMENT

Spirax-Sarco Engineering plc, the world leader in the control and efficient use of steam and in peristaltic pumping, issues the following Interim Management Statement in respect of the period from 1^st January to 9^th May 2011, ahead of its Annual General Meeting today at 2.00 pm.

Trading

In the first four months of this year, our business has performed strongly overall, continuing the pace of sales growth seen in 2010.  Trading conditions in our markets have continued to improve and normalise, as reflected by the rates of general global economic and industrial production growth, although our recovery in Europe remains uneven.  More normal spending patterns by customers for maintenance and small-scale process improvement and energy savings projects have returned.  We are seeing good demand from our emerging markets and more benign conditions in our developed markets.  Overall currency movements versus 2010 have been immaterial.

In line with our strategic plans, we have stepped up our investments in future growth through continued market penetration and new product development.  We also remain focused on increasing our operating efficiency and expect to largely complete the Cheltenham manufacturing site consolidation for the Steam Specialties business by the end of June.  As previously noted, material costs continue to trend upwards, which we expect to mitigate through cost reductions, resourcing and other actions.

Financial position

We operate with a strong balance sheet and the Group had a net cash balance of £33 million at 30^th April 2011 compared with £34 million at 31^st December 2010, reflecting normal seasonal cash flow patterns and higher buffer stocks.  Capital investment is expected to remain at a comparatively high level this year as we complete the investments in Cheltenham and progress our regional manufacturing strategy in China and elsewhere to improve operating efficiency and customer responsiveness, and to reduce operating and logistics costs.  There has been no material change in the financial position of the Group during the period.

Outlook

2011 has started strongly and we are generally encouraged by our business prospects due to our strong market position, effective implementation of our strategic plans and healthy financial condition.  Assuming a sustained global economic recovery, the Board remains confident in the prospects for the Group this year and the progress we expect to achieve.

Enquiries:

Mark E Vernon, Chief Executive

David Meredith, Director Finance

Tel:  [phone]

About Spirax Sarco

Spirax-Sarco Engineering plc is the world leader in both steam system management and peristaltic pumping. The Company provides a broad range of fluid control products, engineered packages, site services and systems expertise for its diverse range of over 100,000 industrial and institutional customers. The Company helps its customers to optimise production capacity, reduce energy costs and emissions, improve product quality and enhance the safety of their operations.  Spirax Sarco is headquartered in Cheltenham, England, has strategically located manufacturing plants around the world and employs approximately 4,600 people, of whom 1,300 are direct sales and service engineers.  Its shares have been listed on the London Stock Exchange since 1959 (symbol: SPX). Further information can be found at www.spiraxsarcoengineering.com 

 

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