Equity prospects


Michael Bray, Research Analyst


52 week high-low£94.40—£58.75

Net yield1.1%

Hist / pros per29.9—34.6

Equity market cap£6,603

Spirax-Sarco Engineering (Spirax) is one of the true great multi-national British engineering companies, comprising three complementary niche businesses operating in thermal energy management market, steam and electrical process heating and unique pumping solutions.

An example of these businesses in action can be seen in food manufacturing. Steam is used for blanching, cooking, baking, packaging, cleaning and sterilising. Electrical process heating elements are used in high-temperature commercial food equipment and Pumps are used to meter ingredients, deliver food to process lines and handle process waste.

These solutions help customers increase effciency, meet environmental targets, improve product quality and enhance the safety of their operations.The Spirax group supports a diverse range of market sectors including beverage, pharmaceutical and power generation. Spirax’s competitive advantage not only comes from the uniqueness and breadth of its technologies, but also from its direct engineering sales force which have allowed Spirax to develop a detailed understanding of their customers, enabling them to create and implement bespoke customer solutions, presenting a formidable barrier to entry for competition. However, Spirax is still impacted by the global industrial production cycle which is in the midst of a downturn.

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