Cheltenham’s biggest manufacturing company, Spirax Sarco, has reported strong organic sales growth of six per cent in 2019, but has also warned of dampened global industrial production growth due to political and economic uncertainty, as well as COVID-19.
Revenues at the company rose to £1.24 billion in 2019, from £1.15 billion in the previous year.
Pretax profit dropped 18 per cent to £236.8 million from £288.8 million the previous year due to non-recurring gain on disposal in 2018.
Nicholas Anderson, Group Chief Executive, said: “We are pleased to report strong organic sales growth of 6% in 2019, ahead of global industrial production growth rates, and organic adjusted operating profit growth of 7%. Both the Steam Specialties and Watson-Marlow businesses benefited from the successful implementation of our strategy, achieving strong organic sales and profit growth, while margins in Chromalox increased in the second half as operational efficiency initiatives began to deliver results.
“Political and economic uncertainty, as well as COVID-19, continue to dampen global industrial production growth forecasts, although we currently assume that conditions will begin to improve during the second half of the year. We remain cautious currently on the economic outlook, but confident in our ability to self-generate growth through the implementation of our strategy and to outperform our markets.”
Spirax Sarco, which has won Queen’s Awards for Enterprise, employs around 1,000 people across Cheltenham and has sales office in 60 countries worldwide.