Shares in Cheltenham-based thermal energy management and fluid technology firm Spirax Group (SPX) hit a five-year low this week, trading even below the level they reached at the peak of the pandemic sell-off, after its latest capital markets event failed to spark enthusiasm.

The FTSE 100 group, whose shares are down 33% this year, making them one of the worst performers in the index, is guiding for mid-single-digit organic sales growth this year with no change in its operating margin but has hinted at headwinds to its targets due to the strength of sterling.

Once a market darling which not that long ago commanded a PE (price to earnings) multiple of 55 times, Spirax finds itself with few friends among the analyst or investor community despite the undoubted high quality and attractive margins of its businesses.

In the last three months, 2024 EPS (earnings per share) estimates have been cut by 26p or 8% and 2025 estimates by 39p or around 11% according to Stockopedia, while several analysts have also cut their price targets for the stock.

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