FTSE 100 engineer Spirax misses expectations amid ‘weak’ macroeconomic backdrop
London-listed engineer Spirax said it missed expectations as the firm flagged a “weak” macroeconomic environment across its key markets.
In its half-year results out this morning, the company said on an adjusted basis, pre-tax profit fell 10 per cent to £137.9m. Revenue also decreased by three per cent to £872m.
In a statement, chief executive Nimesh Patel 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 industrial production, 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.”
Patel took the top job at the FTSE 100 firm in January, after former boss Nicholas Anderson announced his intention to retire last August.
“Following my first six months as CEO, visiting our operations, colleagues and customers, I am confident in the fundamental quality of our three businesses,” Patel added.
“We are delivering early operational improvements and will increase the pace at which we address these within our group.”
Shares in Spirax Group, which rebranded from Spirax-Sarco Engineering in February, are down over 16 per cent this year to date.
The firm noted challenging trading conditions in a May trading update as macroeconomic weakness offset sales growth in a number of its segments.
Earlier this week, the group agreed to invest €4m (£3.4m) in return for a 12 per cent stake in Sustainable Process Heat, a tech start-up in Germany that is pioneering the dvelopment of high temperature heat pumps.