During the last two recessions Spirax-Sarco suffered just a blip in sales and profits. Now the outlook is uncertain again, its triumphs and defensive credentials seem to have been forgotten. Investors’ memories are sometimes short.
These days the engineer’s shares can be bought for 23 times forecast earnings. That is cheap by its standards. Normally the asking price is about 30 per cent higher. For the first time in ages Spirax-Sarco, one of the best performers in the London market over the past few decades, is attractively valued.
Spirax’s steam controls, electrical heating solutions and peristaltic pumps are indispensable to many companies. They improve the efficiency of industrial processes, reducing energy, water use, waste and carbon dioxide emissions, and prevent fluids from getting contaminated. Competition