Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guides
Guidance and tools
Shares
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks Stock plan guidance
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
Spirax reports better-than-expected first half, shares pop
(Sharecast News) - Spirax Group reported first-half results that exceeded analyst expectations on Tuesday, sending shares soaring, as the company reaffirmed full-year guidance despite macroeconomic headwinds. For the six months ended 30 June, group revenue fell 1% to £822.2m on a reported basis but rose 3% organically, outpacing global industrial production growth.
Adjusted operating profit was broadly flat at £158.8m, up 7% organically, with margins improving to 19.3% organically.
Statutory operating profit fell 27% to £106.8m, reflecting restructuring costs and currency headwinds, while profit before tax dropped 30% to £87.9m.
The FTSE 100 company lifted its interim dividend 3% to 48.9p.
It said its electric thermal solutions division led growth with a 10% organic increase, aided by stronger semiconductor demand, while Watson-Marlow Fluid Technology Solutions grew 2% organically, with biopharma orders up more than 10%.
Steam thermal solutions sales were flat but ahead of expectations, particularly outside China.
Management said it was expecting second-half sales growth to accelerate, margins to improve and cash conversion to exceed 80%.
CEO Nimesh Patel said results were "in line with expectations despite the challenging macroeconomic environment," citing strong order books and progress on operational priorities as support for the unchanged outlook.
He added that efficiency programmes were funding investment in "digital and decarbonisation" initiatives.
Analysts described the update as resilient.
Jefferies said the results were ahead of consensus and highlighted "stand-out" performance in electric thermal solutions.
RBC Capital Markets noted the beat across all divisions and said the outcome "helps de-risk unchanged full-year guidance," though it cautioned on ongoing steam market weakness in China.
Citi said order momentum in Watson-Marlow and the turnaround in electric thermal solutions could offer "upside potential to consensus," while Shore Capital said the figures boosted confidence despite macro and currency risks.
At 0905 BST, shares in Spirax Group were up 15.01% at 6,969.48p.
Reporting by Josh White for Sharecast.com.
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity, Equity & Inclusion | Diversity, Equity & Inclusion Reports | Doing Business with Fidelity | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Staying secure | Statutory and Regulatory disclosures | Whistleblowing programme
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.
