Rotork delivers 'strong' H1 performance, reiterates FY guidance

Industrial flow control equipment manufacturer Rotork said on Tuesday that it had delivered a "strong H1 performance" as it reiterated its FY24 guidance.

Rotork said adjusted revenues increased 11.6% to £361.4m in the six months ended 30 June, while adjusted operating profits rose 22.3% to £76.5m and adjusted operating margins improved 190 basis points to 21.2%. Adjusted basic earnings per share surged 26.1% to 6.9p.

The FTSE 250-listed group said orders received were 4% above sales and marginally ahead year-on-year, with oil & gas and water & power sales well ahead. Chemical, process & industrial revenues, on the other hand, were lower year-on-year as a result of reduced mining sector project activity.

Rotork said the outlook for its end markets remained "positive", order intake was "encouraging" in June and July and stated its order book gave it "good visibility".

"Our full-year expectations are unchanged and we continue to anticipate 2024 to be another year of progress on an OCC basis," said chief executive Kiet Huynh. " I am pleased with our strong first half performance which saw sales up double digits year-on-year at OCC and adjusted operating margins up to 21.2%. Orders grew marginally year-on-year on an OCC basis, against a strong comparison which benefitted from higher levels of large project activity."

As of 1000 BST, Rotork shares were up 1.15% at 333.99p.

Reporting by Iain Gilbert at Sharecast.com