Spirax Group Plc (LON:SPX) has announced its 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 |
| Revenue1 | 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% |
| Adjusted6 (£m/p) | 2024 | 2023 | Reported | Organic4 |
| Revenue1 | 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 IP2 of 1.7% |
| ● | Exchange rate headwinds adversely impacted revenue by 5% and adjusted operating profit by 8% |
| ● | STS3 organic revenue growth of 1% with higher growth in the second half |
| ● | ETS3 organic revenue growth of 10% supported by operational improvements |
| ● | WMFTS3 organic revenue growth of 3% driven by Process Industries; Biopharm5 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, Spirax 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.”
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
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 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.
