Rotork PLC - Interim Results
30 Julho 1998 - 4:30AM
UK Regulatory
RNS No 0039c
ROTORK PLC
30th July 1998
Contacts: Bill Whiteley, Chief Executive
Rotork p.l.c. Tel: 0171 831 3113
(10.30am - 1.00pm)
Charles Watson / Tom Baldock
Financial Dynamics Tel: 0171 831 3113
Rotork p.l.c.
INTERIM RESULTS 1998
Rotork p.l.c., the international specialist engineering group, today
announces results for the six months to 30 June 1998.
Highlights include:
* Pre-tax profit up 16% to #12.3m (1997 #10.5m)
* Earnings per share up 17% to 9.1p (1997 7.8p)
* Dividend per share up 13% to 3.9p (1997 3.45p)
Commenting on the results, Chief Executive, Bill Whiteley said:
"Against the background of continued sterling strength and weakness in some
of our geographic and end-user markets, I am pleased with the progress
Rotork has achieved in the first six months. The attractiveness of our
existing product ranges, the programme for new product introduction and our
focused strategy continue to be the source of our strength."
REVIEW OF OPERATIONS
Despite an unpromising outlook for export orientated UK engineering
companies Rotork's trading in the first half of the year has remained
strong. The order book, which was at unusually high levels at the end of
1997, has grown further in the half year to June 1998. Turnover has moved
ahead by 14% to #53.8m and profits by 16% to #12.3m. Earnings per ordinary
share, aided by the share buy-backs at the end of 1997, improved by 17% from
7.8p to 9.1p.
There have been weaknesses in some of our geographic and end user markets.
These, however, have been more than compensated for by work associated with
large projects awarded over the past 12 months. All overseas subsidiaries
operated profitably, including those in Asia, all six of which were ahead of
budget at the half year. Business is particularly strong in China,
Australia, Spain and the USA, while slower business environments are evident
in Holland, Italy, Venezuela and, particularly, Korea. Rotork's strategy of
enhancing its international market coverage has been validated, with new
companies in Thailand and Malaysia performing well. An increased selling
presence is being put in place in China and the Middle East.
Outside the main electric actuator business the restructuring of the Fluid
Power activities is proving successful. An extended product range, coupled
with a more intense selling effort, has resulted in substantial sales gains.
Alecto, the Dutch gearbox manufacturer acquired earlier this year, is
exceeding expectations and it, together with Exeeco in Leeds which is also
performing well ahead of target, make a formidable combination in the valve
gearbox market.
Product development aimed at enhancing the existing ranges and moving Rotork
into new but related markets is receiving significant resources. The
electric fail safe actuator has been launched. Considerable interest is
being shown by, and orders are being received from, major oil companies.
ORDINARY DIVIDEND
On 2 October 1998 the directors intend to pay an interim dividend of 3.9p
per share. This represents a 13% increase year on year.
PREFERENCE SHARES
Following ordinary and preference shareholder approval, 867,936 shares
(55.97%) have been bought in at an average price of 150p, since May 1998.
Further repurchases will be made if the opportunities to do so present
themselves.
OUTLOOK
In spite of the problems afflicting the international market place and the
uncertainties that these create, there is confidence that the strength of
the company's products and its focused strategy will enable Rotork to make
further progress in the second half of the year.
Dr Robert Hawley, CBE
Chairman
Rotork p.l.c.
30 July 1998
This report is being sent to all shareholders. Copies may be obtained from
The Secretary, Rotork p.l.c., Bath BA1 3JQ
ROTORK GROUP INTERIM RESULTS 1998
Unaudited
First First First Full Full
half half half year year
1998 1997 1997 1997 1997
restated restated
#m #m #m #m #m
Turnover 53.82 47.19 47.19 92.85 92.85
Operating profit 11.32 9.66 9.57 20.38 20.20
Net interest and
similar income 0.94 0.87 0.87 1.94 1.94
Profit before
taxation 12.26 10.53 10.44 22.32 22.14
Taxation
UK (1.83) (1.60) (1.60) (4.86) (4.86)
Overseas (2.53) (2.03) (2.03) (3.25) (3.25)
Earnings 7.90 6.90 6.81 14.21 14.03
Earnings per
share - basic 9.09p 7.79p 7.68p 16.06p 15.85p
DIVIDEND
An interim dividend increased by 13% to 3.90p per ordinary share (1997
3.45p) will be paid on 2 October 1998 to shareholders on the register at the
close of business on 14 August 1998. The interim dividend will absorb
#3,358,615 (1997 #3,025,391).
Note:
The comparative financial information as at 30 June 1997 and 31 December
1997 and for the periods then ended has been restated in accordance with
FRS10 "goodwill and intangibles" which is effective for the first time in
the year ending 31 December 1998. This has resulted in the inclusion of
goodwill as an asset in the Balance Sheet and an amortisation charge in
determining operating profits. The effect of the company adopting this
transitional option was to reduce operating profit for the half year by
#93K.
ROTORK GROUP BALANCE SHEET
Unaudited
30 June 30 June 30 June 31 Dec 31 Dec
1998 1997 1997 1997 1997
restated restated
#m #m #m #m #m
Fixed assets
- Tangibles 10.9 9.9 9.9 9.7 9.7
- Intangibles 5.5 3.1 3.0
16.4 13.0 12.7
Current assets
Stocks 12.5 11.3 11.3 14.0 14.0
Debtors 24.5 19.8 19.8 22.4 22.4
Net cash 30.3 33.7 33.7 34.0 34.0
67.3 64.8 64.8 70.4 70.4
Creditors and
provisions (29.4) (26.8) (26.8) (35.2) (35.2)
37.9 38.0 38.0 35.2 35.2
Net assets 54.3 47.9 51.0 44.9 47.9
Share capital 5.0 5.9 5.9 5.9 5.9
Reserves 49.3 42.0 45.1 39.0 42.0
Shareholders' funds 54.3 47.9 51.0 44.9 47.9
The financial information for the year ended 31 December 1997 is an abridged
version of the full accounts for that year, which received an unqualified
report from the auditors and which have been filed with the Registrar of
Companies.
END
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