Upbeat update from Spirax-Sarco

The company that boasts it is the world leader in the control and efficient use of steam and in peristaltic pumping, said trading conditions continued to be positive and sales for the first half-year were ahead 8% and that its order book had increased. Growth continued to be led by the group's Watson-Marlow Pumps subsidiary and in the steam business in the Americas and Asia Pacific. Profit margin shows a strong improvement over the 15.0% in the first half of 2009 and is expected to be above 19% for the first half of 2010. Spirax-Sarco had benefited from operational gearing from the increase in sales, cost reduction measures, small exchange gains and a favourable product mix. Material costs had also been favourable but were rising and likely to have an impact on the second half of the year. Investment was being increased in new product and market development to enhance future growth prospects. Capital investment for the year is expected to be at a high level as the group moves forward with several major manufacturing projects, including its new plant in China that was opened last week and the consolidation onto one manufacturing site in Cheltenham.