20
November 2024
Rotork plc
Trading
update
Higher orders year-on-year
and good momentum
Rotork plc ("Rotork"), the
market-leading global provider of mission-critical intelligent flow
control solutions, today issues the following update covering the
four-month period to 27 October 2024 (the "period").
Trading update
The Group's performance over the
period was in line with management expectations. Group order intake
was 8% higher year-on-year on an organic constant
currency1 (OCC) basis, with all three divisions ahead,
led by Water & Power and Oil & Gas.
Oil & Gas was particularly active
in the Upstream Electrification and Downstream segments and in the
EMEA (Middle East) and Americas regions. The division's customers
are focused on increased production (particularly of gas) and
delivering on their decarbonisation commitments.
Chemical Process & Industrial
('CPI') revenues were higher year-on-year (OCC). Americas sales
returned to growth, having been lower in the first half due to
reduced mining sector project activity, as did China revenues.
Divisional growth was driven by the chemical, critical HVAC and
marine and transportation segments.
Water & Power saw strong growth
in both sectors. In water there was good activity in wastewater
treatment in APAC and in water infrastructure in the Americas and
EMEA. Growth in Power was driven by the conventional power sector
and APAC.
Rotork's full year expectations are
unchanged and the Group continues to anticipate 2024 to be another
year of progress on an OCC basis.
Growth+ update
Our Growth+ strategy continues to
deliver strong momentum across all three initiatives of Target
Segments, Customer Value and Innovative Products &
Services.
Target Segments, which represent
around half of group revenue, are key areas within each of our
divisions where there are significant opportunities for profitable
growth. To deliver on these opportunities we have invested in
business development, key account management and project pursuit
and we have continued to make good progress, with business wins in
these target segments being increasingly significant. In Oil &
Gas, LNG revenues were higher in the period compared with the first
half as earlier liquefaction order wins started to ship. CPI was
successful in securing an order from a South American copper miner
for equipment to be used in a major water re-use project. The water
infrastructure and water and wastewater treatment markets delivered
encouraging order growth, particularly in the Americas and in APAC.
Desalination, another Target Segment for Water & Power, made
good progress in EMEA.
We continued to make strong progress
under the Customer Value pillar. Since the period-end, we held the
formal opening ceremony for our relocated facility in China. We
will shortly launch our new Group website, a key step in improving
the customer experience that Rotork provides, and open our new
manufacturing site in the Kingdom of Saudi Arabia.
In Innovative Products &
Services, we launched integrated ethernet functionality for our IQ
range in the period. This is an important product enhancement which
further differentiates our flagship electric actuators, extending
compatibility, enabling higher data transfer volume and speeds,
eliminating the requirement for gateway devices and operating
seamlessly with our iAM (intelligent asset management) system.
Integrated ethernet has multiple applications across all three
Rotork sectors and the launch has been particularly well received
by water industry end users.
Financial position update
Rotork remains highly cash generative
and retains a strong balance sheet. Net cash including lease
liabilities at 27 October 2024 was £106m (June 2024: £119m). During
the period Rotork returned c. £44m to shareholders (through payment
of an interim dividend and the purchase of shares under the
continuing £50m share buyback programme). Rotork remains active in
looking for suitable acquisition opportunities, consistent with the
Growth+ strategy.
Rotork will publish 2024 full-year
results on Tuesday 11 March 2025.
- Ends
-
Notes:
Market expectation for 2024 revenue
growth on an OCC basis is 7.7% and for adjusted operating profit
margin improvement is 60 basis points. Based on exchange rates from
1 January to 27 October 2024 and assuming 27 October 2024 rates
were unchanged for the rest of the year, the year-on-year currency
headwind to reported full year revenues is estimated at 3½%.
Visit www.rotork.com/en/investors/shareholder-information
for the detailed company-compiled
consensus.
¹ OCC is organic constant currency
results excluding acquired and discontinued businesses and restated
at 2023 exchange rates.
Enquiries:
|
|
Rotork plc
|
Tel: +44 (0)1225 733
200
|
Kiet Huynh, Chief
Executive
|
|
Ben Peacock, Chief Financial
Officer
|
|
Andrew Carter, Investor Relations
Director
|
|
|
|
FTI Consulting
|
Tel: + 44 (0)20 3727
1340
|
Nick Hasell / Susanne Yule
|
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Legal Entity Identifier:
213800AH5RZIHGWRJ718
About
Rotork
Rotork is a market-leading global
provider of mission-critical intelligent flow control solutions for
oil & gas, water and wastewater, power, chemical process and
industrial applications. We help customers around the world to
improve efficiency, reduce emissions, minimise their environmental
impact and assure safety. Rotork employs about 3,500 people, has
manufacturing facilities in more than 15 locations and serves 170
countries through a global service network. Its shares are listed
on the main market of the London Stock Exchange (symbol: ROR) and
are a constituent of the FTSE 250 index. For more information
please visit www.rotork.com.