Spirax-Sarco Engineering (SPX) – great business but is it really worth the premium?
The world leader in the control and efficient use of steam and in peristaltic pumping issued a mixed Interim Management Statement suggesting that earnings growth could be stalling. However, it’s hard to right off this terrific business!
Management reported that trading conditions in most of the Group’s markets have been similar to the second half of last year and although they continue to see reasonably good base business customer expenditure for more costly plant improvement and energy saving projects is being held back. For the four months ending 30th April 2013, sales increased by 6% but this also including a gain of 2% from favourable currency movements as sterling weakened so that’s a 4% net in broad terms. There was modest organic sales growth in Europe, Middle East and Africa (“EMEA”) and strong progress in Latin America…