Spirax Group reports fall in full-year profits amid restructure

Cheltenham-headquartered engineering firm Spirax Group has reported a fall in profits for the financial year. The FTSE-100 company posted a 1% fall in reported revenue to £1.6bn for the 12 months to December 31, 2024. Adjusted profit before tax fell to £288.2m from £309.2m the year previously.

The company said global industrial production growth for the full year was lower than had been forecast and second half recovery did not materialise with industrial production falling in key markets such as the US, Germany, France, Italy and the UK, representing around 50% of group sales.

However, Sprirax added that all three of its business divisions delivered organic sales growth during the year with adjusted operating profit margins in line with expectations.

According to the group, its restructuring strategy will realise annual savings of around £35m to fund investment in future organic growth. The cash costs to deliver the programme will be mostly incurred in 2025, Spirax said