Spirax Group (SPX) Trading Update summary

Economic environment

• Industrial production growth remained weak in Q3, with key markets underperforming forecasts.

• Global IP (excluding China) forecast for 2024 was revised down to 0.9% from 1.5%.

• Macroeconomic conditions in China continue to be challenging.

Trading performance

• Group organic sales growth for the ten months to 31 October exceeded first half levels, with all three businesses growing year-on-year, excluding currency effects.

• Steam Thermal Solutions returned to organic sales growth, though large orders in China remained weak; MRO sales grew.

• Electric Thermal Solutions saw higher organic sales growth, driven by increased shipments and operational improvements.

• Watson-Marlow's Biopharm sales were supported by a normalizing order book, while process industries sales growth improved.

Financial position

• Net borrowings (excluding leases) at 31 October were £642 million, down from £718 million at 30 June.

• Net debt to EBITDA ratio improved to 1.7x from 1.9x at 30 June.