LONDON (ShareCast) - (Sharecast News) - Steam and fluid engineering company Spirax-Sarco reported revenue growth of 13% in its first half on Wednesday, to £643.7m, with organic revenue growth of 17%.
The FTSE 100 company said its adjusted operating profit was ahead 37% for the six months ended 30 June, to £162.9m, with organic profit growth standing at 42%, while statutory operating profit was ahead 39% at £153.6m.

Its adjusted operating margin came in at 25.3% for the period, which was up 440 basis points organically, and 450 basis points on a statutory basis.

Operationally, Spirax-Sarco described "strong" order book growth across all three of its businesses, with organic sales growth in Steam Specialties of 13%, and its margin there rising 430 basis points organically.

Electric Thermal Solutions organic sales growth was 6% with the margin up 250 basis points organically, and Watson-Marlow organic sales growth came in at 35%, as the margin there advanced an organic 400 basis points.

Net debt totalled £192.8m at the end of the period, narrowing from £326m year-on-year, while the company's leverage reduced to 0.6x EBITDA.

The board declared an interim dividend of 38.5pence, up 15%, following the 7% total increase in 2020.

"A strong recovery of global industrial production in the first half of this year, combined with exceptional Covid-19 vaccine related demand in Watson-Marlow, has supported strong organic sales and profit growth across all three businesses," said group chief executive officer Nicholas Anderson.

"These results continue to demonstrate the robust business model, strategy and execution of our group, being achieved through the outstanding efforts and dedication of all our employees in managing the higher levels of demand to meet our customers' needs.

"This excellent first half execution underpins our improved full-year profit outlook."

At 0828 BST, shares in Spirax-Sarco Engineering were up 2.15% at 15,450p.

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