Half Year Report 2009

Notes to the Accounts > Basis of Preparation

The half year consolidated financial statements of Spirax-Sarco Engineering plc and its subsidiaries (the ‘Group’) have been prepared on the basis of the accounting policies set out in the 2008 Spirax-Sarco Engineering plc Annual Report, and in accordance with International Accounting Standard 34 Interim Financial Reporting, as adopted by the EU. IFRS 8, Operating Segments, has been adopted from 1st January 2009 and reflected in the comparative figures. The standard introduces a management approach to segment reporting and segment information is consistent with internal management reporting.

The comparative figures for the year ended 31st December 2008 do not constitute statutory accounts within the meaning of Section 240 of the Companies Act 1985. The consolidated statutory accounts for Spirax-Sarco Engineering plc in respect of the year ended 31st December 2008 have been reported on by the company’s auditors and delivered to the registrar of companies. The report of the auditors was unqualified and did not contain statements under section 237 (2) or (3) of the Companies Act 1985. The financial statements for the six months ended 30th June 2009, which have not been audited or reviewed by the auditors, were authorised for issue by the Board on 20th August 2009.

The interim report has been prepared solely to provide additional information to shareholders as a body to assess the Group’s strategies and the potential for those strategies to succeed. This interim report should not be relied upon by any other party or for any other purpose.

Cautionary Statements

This interim report contains forward-looking statements. These have been made by the directors in good faith based on the information available to them up to the time of their approval of this report. The directors can give no assurance that these expectations will prove to have been correct. Due to the inherent uncertainties, including both economic and business risk factors underlying such forward-looking information, actual results may differ materially from those expressed or implied by these forward-looking statements. The directors undertake no obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise.

Principal Risks and Uncertainties

There are a number of potential risks and uncertainties which could have a material impact on the Group’s performance over the remainder of the financial year and could cause actual results to differ materially from expected and historical results. The principal risks and uncertainties are strategic, commercial, operational and financial. Ultimately these affect our ability to deliver our prime financial objective, which is to provide enhanced value to shareholders through consistent growth in earnings per share and dividends per share as a result of maintaining our world leading position and investing in our businesses for growth. More details of the key risks facing the Group’s businesses are included on page 27 and page 36 of the Group’s statutory financial statements for the year ended 31st December 2008. Details of further potential risks and uncertainties arising since the issue of the previous statutory financial statements are included within the Review of Operations as appropriate.

Responsibility Statement

The directors confirm that to the best of their knowledge:

• this financial information has been prepared in accordance with IAS 34, as adopted by the EU;
• this interim management report includes a fair review of the information required by DTR 4.2.7R (indication of important events during the first half and description of principal risks and uncertainties for the remaining half of the year); and
• this interim management report includes a fair review of the information required by DTR 4.2.8R (disclosure of related party transactions and changes therein)

on behalf of the Board