Spirax-Sarco increases its 2015 interim dividend by 7%

DividendMax Ltd.

Spirax-Sarco increases its 2015 interim dividend by 7%

Organic sales growth of 3%

Operating profit up 3% at constant currency excluding India start-up and UK headcount reduction costs

Underlying operating margin maintained

Currency headwind reduced sales on translation by 2.6% versus first half 2014

Strong growth in Watson-Marlow Fluid Technology business

98% cash conversion and interim dividend +7%

Commenting on the results, Nicholas Anderson, Group Chief Executive, said:

"We are pleased with the organic sales increase of 3%, against a backdrop of slowing growth rates in the global industrial markets we serve, particularly in Asia and South America. We have seen good growth in Europe, and Watson-Marlow is having another strong year. Currency headwinds reduced sales by 2.6% against the first half 2014. Our underlying operating profit margin was maintained and we have continued to reduce our structural cost base while also stepping up our strategic investments for future growth, particularly in India. These actions in the first half of 2015 will bring benefits in the second half of this year and in future years.

We anticipate that our markets will remain challenging, especially in emerging economies, but continue to expect modest market improvements in Europe and North America during the second half of this year and remain focussed on our strategic priorities to generate our own growth. We have a robust and resilient business model and, assuming no unexpected deterioration in our markets, the Board remains confident that the Group will make progress in 2015."

Companies mentioned