According to analysts at Investec, engineering group Spirax-Sarco (SPX) "rarely disappoints" and certainly rings true in light of the 2015 results. The group outperformed market expectations, reporting adjusted pre-tax profit of £151m compared with consensus forecasts of £149.6m. Most of that can be explained by a record operating margin, a reflection of flat input costs and improved purchasing processes across the group.
However, reported sales and profit were hit by negative foreign exchange rates. Adjusting for this, and on a like-for-like basis, sales rose 2 per cent to £667m. Sales grew particularly strongly at the Watson-Marlow Fluid Technology Group (which manufactures positive displacement pumps), up 9 per cent on an underlying basis. The same can pretty much be said of the profit performance. At constant exchange rates, adjusted operating profit rose 4 per cent to £152m - again, thanks to a strong profit performance from Watson-Marlow.
Forecasts are under review, but Investec had expected pre-tax profit of £149m, giving EPS of 142p for 2016. That compares with £151m and 142p in 2015.
SPIRAX-SARCO ENGINEERING (SPX) | ||||
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ORD PRICE: | 3,314p | MARKET VALUE: | £2.43bn | |
TOUCH: | 3,312-3,317p | 12-MONTH HIGH: | 3,637p | LOW: 2,664p |
DIVIDEND YIELD: | 2.1% | PE RATIO: | 26 | |
NET ASSET VALUE: | 542p* | NET CASH: | £5m |
Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
---|---|---|---|---|
2011 | 650 | 132 | 120 | 49.0 |
2012 | 662 | 124 | 112 | 53.0 |
2013 | 689 | 146 | 133 | 59.0 |
2014 | 678 | 145 | 133 | 64.5 |
2015 | 667 | 140 | 130 | 69.0 |
% change | -2 | -4 | -2 | +7 |
Ex-div: 28 Apr Payment: 27 May *Includes intangible assets of £109m, or 148p a share |