REG - Spirax Group PLC - 2024 Full Year Results

SpiraxAnnouncement

11/03/2025 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250311:nRSK0533Aa&default-theme=true

RNS Number : 0533A  Spirax Group PLC  11 March 2025

11 March 2025

2024 Full Year Results

Organic growth well ahead of IP and margin stability in a challenging trading
environment

Twelve months to 31 December

 Statutory (£m/p)          2024     2023     Reported
 Revenue(1)                1,665.2  1,682.6  (1)%
 Operating profit          304.6    284.4    7%
 Operating profit margin   18.3%    16.9%    140bps
 Profit before taxation    258.9    244.5    6%
 Basic earnings per share  259.6    249.5    4%
 Dividend per share        165.0    160.0    3%

 

 Adjusted(6) (£m/p)                 2024     2023     Reported  Organic(4)
 Revenue(1)                         1,665.2  1,682.6  (1)%      4%
 Adjusted operating profit          333.9    349.1    (4)%      4%
 Adjusted operating profit margin   20.1%    20.7%    (60)bps   10bps
 Adjusted profit before taxation    288.2    309.2    (7)%
 Adjusted basic earnings per share  286.3    312.4    (8)%
 Adjusted cash conversion           87%      81%      600bps

 

 ●    Group organic revenue growth of 4% despite weaker than expected global IP(2)
      of 1.7%
 ●    Exchange rate headwinds adversely impacted revenue by 5% and adjusted
      operating profit by 8%
 ●    STS(3) organic revenue growth of 1% with higher growth in the second half
 ●    ETS(3) organic revenue growth of 10% supported by operational improvements
 ●    WMFTS(3) organic revenue growth of 3% driven by Process Industries;
      Biopharm(5) orders starting to recover
 ●    Group adjusted operating profit margin modestly improved organically;
      investing in future growth
 ●    Statutory operating profit and margin higher as 2023 impacted by restructuring
      and write-down charges
 ●    Adjusted cash conversion of 87% supported by working capital management;
      leverage reduced to 1.6x
 ●    2025 restructuring to realise annualised benefits of approximately £35m for
      investment in organic growth
 ●    2025 organic growth expected to be consistent with 2024, well ahead of IP,
      with margin progress

 

Nimesh Patel, Group Chief Executive Officer, commenting on the results said:

"All three of our Businesses delivered organic sales growth with margins in
line with our expectations, despite weaker than expected IP in the second
half.  I am particularly pleased with progress in ETS, where improvements to
manufacturing throughput supported higher sales and improved margin."

"As a new executive team, we developed our Together for Growth Strategy to
deliver on our medium-term financial objectives, while also better positioning
the Group for the significant long-term growth opportunities ahead of us.  We
are also well underway with actions to simplify our organisation and better
leverage resources to support future growth. I thank my colleagues for their
commitment as we continue to focus on the operational priorities that are
within our control and have a meaningful impact on driving growth in a
challenging environment."

"Mindful of the outlook for IP, I remain confident in the execution of our
strategy and in the strength of our business model, which together will
sustain organic sales growth well ahead of IP and mid-single digit organic
profit growth in 2025."

 

The results are available in full
at http://www.rns-pdf.londonstockexchange.com/rns/0533A_1-2025-3-10.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/0533A_1-2025-3-10.pdf)

(1) 'Sales' is used interchangeably with 'revenue' when describing the
financial performance of the Group

(2) 'IP': Industrial Production growth

(3) 'STS': Steam Thermal Solutions; 'ETS': Electric Thermal Solutions;
'WMFTS': Watson-Marlow Fluid Technology Solutions

(4) Organic measures are at constant currency and exclude contributions from
acquisitions and disposals

(5) 'Biopharm' refers to WMFTS sales to the Pharmaceutical & Biotechnology
sector

(6) See Appendix to the Financial Statements for an explanation of alternative
performance measures and reconciliation to IFRS(

)

For further information, please contact:

 

 Louisa Burdett, Chief Financial Officer:  +44 (0) 1242 240281
 Mal Patel, Head of Investor Relations:    +44 (0) 1242 240281

 

Media

 

 Martin Robinson, Teneo:  +44 (0) 20 7260 2700
 spiraxgroup@teneo.com

 

 

Audio webcast

The results presentation will be available as a live webcast from 9.30 am on
the Company's website at www.spiraxgroup.com (http://www.spiraxgroup.com) or
via the following link: https://edge.media-server.com/mmc/p/igh234r8/

A recording will be made available on the website shortly after the meeting.

 

About Spirax Group plc

Spirax Group is positioned to play a critical role in enabling the industrial
transition to net zero, aligned to our Purpose to create sustainable value for
all our stakeholders as we engineer a more efficient, safer and sustainable
world.  We put solving customers' problems at the heart of our total
solutions approach.  Our global thermal energy and fluid technology solutions
improve operating efficiency and safety in our customers' critical industrial
processes.  Our new-to-world decarbonisation* solutions will use our
proprietary technologies to electrify boilers, for the raising of steam, as
well as the electrification of other critical industrial process heating
applications.

Spirax Group comprises three strong and aligned Businesses: Steam Thermal
Solutions helps customers control and manage steam within their mission
critical industrial applications, such as cleaning, sterilising, cooking and
heating.  We are helping to put food safely on the world's tables and keeping
our hospitals running. Electric Thermal Solutions has proprietary technologies
that deliver electrification solutions at scale in industrial settings,
including for the raising of steam, supporting our customers to achieve their
net zero goals. We also deliver freeze protection and defrost solutions
critical to aviation and space industries and ensure thermal uniformity in
Semiconductor chip manufacturing to power the critical electronic systems we
rely on.  Watson‐Marlow Fluid Technology Solutions is engineering vital
fluid technology solutions that optimise the efficient use of resources and
support advancements in global health, such as lifesaving vaccines and gene
therapies.

Spirax Group is headquartered in Cheltenham (UK). We have over 30
strategically located manufacturing plants around the world and are committed
to creating a safe and inclusive working culture for our 10,000 colleagues,
operating in nearly 70 countries and serving over 100,000 customers
globally.

The Company's shares have been listed on the London Stock Exchange since 1959
(symbol: SPX) and we are a constituent of the FTSE 100 and the FTSE4Good
Indexes.

 

* Eliminates scopes 1 and 2 greenhouse gas emissions when connected to a green
electricity source.

 

Further information can be found at www.spiraxgroup.com
(http://www.spiraxgroup.com)

 

RNS filter: Results

LEI 213800WFVZQMHOZP2W17

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  FR GPUGGWUPAGCU