2012 Annual Report - Spirax-Sarco Engineering plc
2012 Annual Report - Spirax-Sarco Engineering plc
2012 Annual Report - Spirax-Sarco Engineering plc
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Group at a glance<br />
The Group comprises the <strong>Spirax</strong> <strong>Sarco</strong> steam<br />
specialties business and Watson-Marlow<br />
peristaltic and niche pumps.<br />
The <strong>Spirax</strong> <strong>Sarco</strong> steam specialties business is<br />
split into three regional divisions:<br />
• Europe, Middle East and Africa (EMEA)<br />
• Asia Pacific<br />
• Americas.<br />
<strong>Spirax</strong> <strong>Sarco</strong> EMEA<br />
Change<br />
Revenue<br />
£232.8m -7%<br />
Operating profit<br />
£36.7m -14%<br />
Operating margin<br />
15.8% -120bps<br />
Highlights<br />
• Organic sales flat (reported sales down 7% due mainly<br />
to weak euro)<br />
• Economic conditions deteriorated throughout <strong>2012</strong><br />
• Flat sales in combined large mature markets of France,<br />
Germany, Italy, Spain and the UK<br />
• Eastern Europe impacted by Eurozone uncertainty but higher<br />
second half demand<br />
• Restructuring actions taken to reduce cost base in Europe<br />
• Operating profit down 4% at constant currency<br />
• Uncertainty clouds outlook<br />
page 18<br />
<strong>Spirax</strong> <strong>Sarco</strong> Asia Pacific<br />
Change<br />
Revenue<br />
£166.9m +13%<br />
Operating profit<br />
£43.9m +16%<br />
Operating margin<br />
26.3% +60bps<br />
Highlights<br />
• Sales up 12% at constant currency – good growth across<br />
product groups<br />
• Market conditions broadly positive<br />
• Another outstanding year in China – good exposure to<br />
domestic consumption<br />
• Good year in Korea from a strong project-driven second half<br />
• Continued to add sales resource in emerging markets<br />
• Operating profit up 11% at constant currency and margin<br />
at 26.3%<br />
page 20<br />
Revenue £m<br />
Revenue £m<br />
2008 226.1<br />
2009<br />
225.5<br />
2010<br />
230.0<br />
2011<br />
250.1<br />
<strong>2012</strong><br />
232.8<br />
2008 98.9<br />
2009<br />
104.7<br />
2010<br />
2011<br />
<strong>2012</strong><br />
131.5<br />
147.1<br />
166.9<br />
Operating profit £m<br />
Operating profit £m<br />
2008 39.2<br />
2008 21.1<br />
2009<br />
35.6<br />
2009<br />
23.1<br />
2010<br />
36.8<br />
2010<br />
34.3<br />
2011<br />
<strong>2012</strong><br />
36.7<br />
42.5<br />
2011<br />
<strong>2012</strong><br />
37.8<br />
43.9<br />
6 <strong>Spirax</strong>-<strong>Sarco</strong> <strong>Engineering</strong> <strong>plc</strong> <strong>Annual</strong> <strong>Report</strong> and Accounts <strong>2012</strong>
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