REG - Rotork PLC - Trading Update

RotorkAnnouncement

23/11/2022 07:00

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RNS Number : 2773H  Rotork PLC  23 November 2022

Rotork Plc

Trading update

Successful management actions delivering a strong revenue recovery

23 November 2022

Rotork plc ("Rotork"), the global provider of mission-critical intelligent
flow control solutions, today issues the following trading update covering the
four-month period to 30 October 2022.

Trading update

Revenues in the four months grew 18.6% year-on-year on an OCC(1) basis,
benefiting from higher selling prices as well as the successful supply chain
improvement measures implemented over the last 18 months. These initiatives
included direct purchasing and forward buying of semiconductors,
re-certification and re-engineering of products, securing of contracted
logistics routes and tactical inventory build.

Activity in the period was driven by customers' operational rather than
capital expenditure and they continue to spend on automation, electrification
and digitalisation projects as well as modernisation and maintenance. Order
intake was ahead a low single digit percentage year-on-year on an OCC basis,
reflecting the strength of the prior year period which included several larger
orders which were not repeated. Order intake in October was encouraging,
solidly ahead year-on-year.

Rotork retains a strong balance sheet. Net cash at 30 October 2022 was £79.4m
(June 2022: £90.4m). During the period we paid an interim dividend of
£20.6m.

Growth+

Earlier this month we outlined our new Growth+ strategy at a Capital Markets
Event. Growth+ is designed to deliver our growth ambition through our three
pillars of Target Segments, Customer Value and Innovative Products &
Services, each underpinned by our 'Enabling a Sustainable Future' initiative.

We continue to see good growth opportunities in our Target Segments. In North
American upstream, for example, there is growing momentum behind
electrification in the drive towards methane emissions reduction. In the
Middle East, carbon capture and storage is increasingly being incorporated
into major gas projects and the desalination market is particularly active. As
part of our commitment to making a positive social impact we have announced an
employee benefits review which included bringing forward salary increases for
all but our most senior people.

We were pleased to have been ranked recently in the top 5% globally in the
Machinery and Electrical Equipment industry by S&P in its highly regarded
Corporate Sustainability Assessment.

Outlook

We expect 2022 adjusted operating profit to be in line with expectations on an
OCC basis and anticipate entering 2023 with a record order book that is
significantly higher than when we started this year.

Rotork will publish 2022 full-year results on Tuesday 28 February 2023.

¹ OCC is organic constant currency results excluding acquired and
discontinued businesses and restated at 2021 exchange rates

Enquiries:

 Rotork plc                                  Tel:  +44 (0)1225 733 200
 Kiet Huynh, Chief Executive
 Jonathan Davis, Finance Director
 Andrew Carter, Investor Relations Director

 

 FTI Consulting                                 Tel:  + 44 (0)20 3727 1340
 Nick Hasell / Susanne Yule
 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 3,200 people, has manufacturing
facilities in more than 17 locations and serves 170 countries through a global
service network. Its shares have a premium listing on the London Stock
Exchange (symbol: ROR) and are a constituent of the FTSE 250 index. For more
information please visit www.rotork.com (http://www.rotork.com) .

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