FTSE 100 engineering group falls short of expectations amid ‘weak’ macroeconomic backdrop

Cheltenham-based Spirax Group has reported half-year results which were “slightly below expectations” with the company expecting the second half of the year to be stronger.

For the six months ended 30 June 2024, the global engineering group reported statutory revenue of £827m, down 3% down on the £850.8m 2023 figure due to a “weak macroeconomic environment” in some of its key markets and strong currency headwinds.

On an adjusted basis, pre-tax profit fell 10% to £137.9m

Nimesh Patel, group chief executive, said: “Against the backdrop of a weak macroeconomic environment in some of our key markets and a strong currency headwind, first half results were slightly below our expectations. We expect stronger growth in the second half, supported by higher IP, ongoing operational improvement in ETS and cost discipline. While we have seen early signs of improving Biopharm demand, we do not anticipate a meaningful recovery until late 2024.

“Following my first six months as CEO, visiting our operations, colleagues and customers, I am confident in the fundamental quality of our three Businesses. We are delivering early operational improvements and will increase the pace at which we address these within our Group. We are also focusing our investments to capitalise on global trends and high growth markets, which will accelerate our long term organic growth. I thank my exceptional colleagues for their support and look forward to evolving and strengthening Spirax Group together.”