- Thermal energy management and pumping specialist Spirax‐Sarco Engineering said it still expected to report record annual profits, though it also warned that supply-chain issues were hurting margins.

In a trading update for the four months through October, the company said supply-chain disruptions had led to a slight quarterly decrease in global industrial production.

'We continue to experience very strong demand across the group, with order books in all three businesses expanding in the four months to the end of October above our expectations at the time of the half-year results,' it said.

However, it said all three businesses had been impacted by shipment delays, particularly its Watson-Marlow and electric thermal solutions units.

'Within electric thermal solutions we also experienced delays in the delivery of operational performance improvements resulting in lower sales growth than anticipated,' the company added.

'The adverse effect of rising material and freight costs continues to be broadly offset by internal efficiencies and price management practices.'

Spirax‐Sarco Engineering said currency effects had an adverse impact on sales and operating profit, compared to the same period of 2020, as sterling strengthened against its basket of trade currencies.

It said it anticipated close to a 4% adverse impact on full-year sales and profit, compared with the full year 2020, due to currency effects.

'We are maintaining our overall guidance despite the supply chain challenges in the second half of the year and expect record levels of revenue, profit and operating margin for the full year 2021,' Spirax‐Sarco Engineering said.

'For 2022, we expect growth in both sales and profit, underpinned by continuing strong demand and our higher-than-normal order book.'

'The group operating margin is expected to be lower due to the full-year impact of revenue investments in 2021, as well as further investment planned in 2022 to support our future growth and operating margins.'

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