2012 Annual Report - Spirax-Sarco Engineering plc

Introduction
Spirax-Sarco Engineering plc is a
multi-national industrial engineering group
specialising in steam and pump technology.
What is our investment proposition?
• We seek to deliver consistent annual organic sales growth and have a long
history of steady growth and high trading margins.
• We have excellent prospects for future growth – organic sales revenues over
the past 30 years have increased by more than 8% per annum.
• We have a resilient business model. We benefit from the diversity of our end
user industries and customers, our geographic spread and significant presence
in emerging markets, high replacement product content and a large base of
industrial steam systems installed around the world that require continual upkeep
and improvement.
• We operate with a strong balance sheet to protect the business and facilitate
future growth. We manage capital employed to turn profit into cash, which we will
reinvest to sustain and improve future returns or, where cash generated exceeds
expected future requirements, will seek to return to shareholders.
• We provide value to shareholders through consistent growth in earnings and
dividends, and are proud to have extended our dividend record to 45 years.
We are creating value…
• In 2012, revenue grew 5% at constant currency to £662m
• Pre-tax profit grew £7m at constant currency to £139m
• Free cash flow £92m
In this report we explain how the business can generate more
value for investors and what we are doing to make it happen.
Front cover image: Stainless steel chimneys in Munich, Germany.