Spirax-Sarco in safe hands

Emea underlying operating profit, after stripping out last year's restructuring costs and currency benefits, rose 36 per cent during the first half to £22.7m. Half of that gain was down to cost cuts, but European factories have become more efficient, too, and Mr Anderson has kept a tight rein on pricing and discounts. And sales there still rose 3 per cent at constant currency as companies finally had to spend on maintenance. That was the driving force behind a 14 per cent jump in group profit to £68.1m, although there were gains elsewhere.

In Asia, sales grew 8 per cent and profit by half that to £19.8m, as a poor first quarter in south-east Asia and persistent weakness in Australia and Japan partially offset strength in China and Korea. North America remains slow, too, largely offsetting big gains in Latin America. Still, the Watson-Marlow pumps business increased profits in double digits and has much more to go for in emerging markets.

Broker Numis Securities expects full-year adjusted pre-tax profit of £149m, giving adjusted EPS of 139.4p (from £138m and 125.6p in 2012).