Spirax targets more growth despite sluggish backdrop
FTSE 100 manufacturer Spirax Group increased profits by 6% in 2024 while setting out on its Together for Growth strategy.
The Cheltenham-headquartered group specialises in steam management systems and employs 10,000 people across 30 manufacturing sites worldwide.
Revenues slipped slightly, to £1.67bn, but were up 4% after stripping out the impact of currency movements and M&A activity. Pre-tax profits rose £14m to £259m.
Cost savings are expected to create £35m to use to support investment in organic growth, and Spirax Group expects to match 2024’s organic growth and remain “well ahead” of the industrial production benchmark.
Spirax Group has three divisions – steam thermal solutions, electric thermal solutions, and Watson-Marlow fluid technology solutions.
Nimesh Patel, who stepped up to group chief executive in January 2024 after our years as Spirax Group’s chief financial officer, said: “All three of our Businesses delivered organic sales growth with margins in line with our expectations, despite weaker than expected IP [Industrial Production] 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.
“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.”
