Rotork is a market-leading global provider of mission-critical intelligent flow control and instrumentation solutions for Oil & Gas, Water and Wastewater, Power, Chemical process and Industrial applications. Its shares have a premium listing on the London Stock Exchange (symbol: ROR), have a market cap of £2.8bn and are a constituent of the FTSE 250 index.
We were delighted to welcome CEO Kiet Huynh and Andrew Carter, Director of Investor Relations, to the latest Yellowstone Advisory webinar to present the full year 2022 results. A recording of the webinar is available here.
CEO Kiet Huynh has been in the job a year and it’s been a busy and exciting year spent visiting sites, meeting colleagues, customers and investors. Kiet reported he is genuinely excited to be leading a first-class engineering company. A point reinforced by customers who talk about Rotork as a fantastic brand with leading products and high levels of site service. Return on sales and return on capital employed is high and well understood by investors but stronger growth going forward is a key imperative for investors. Hence the launch of the Growth+ strategy. It is clear too that playing a key role in emissions reduction and decarbonisation as part of a broader energy transition is very important to Kiet and Rotork. This absolutely fits into how they view their purpose, “Keeping the world flowing for future generations”, and their values of: stronger together, always innovating and being a trusted partner, whilst tackling the sustainability issues of our time.
In terms of the FY 22 results the company experienced an improving revenue trend through the year and into the second half and stronger performance from Oil & Gas and Chemical, Process & Industrial compared to Water and Power. The following areas of strong performance were highlighted : revenues grew 8.4% OCC, operating margins came in at 22.3%, ROCE improved to 31.3% and after cash conversion of 76% the company ended the year with net cash of £106M. Cash conversion was below the previous years due to phasing of revenues at the back end of 2022 and it also reflected an increase in working capital as more inventory was built up to address the supply chain issues. Two non-financial measures were also highlighted. The company is proud of their 17% reduction in carbon emissions and for being mentioned in the S&P Global sustainability…
