REG - Rotork PLC - Trading Update

RotorkAnnouncement

28/04/2023 07:00

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RNS Number : 7831X  Rotork PLC  28 April 2023

Rotork Plc

Trading update

Encouraging start to 2023 and good visibility into the second half

28 April 2023

Rotork plc ("Rotork"), the global provider of mission-critical intelligent
flow control solutions, today issues the following trading update covering the
first quarter period from 1 January to 2 April 2023 ahead of its Annual
General Meeting to be held later today.

Trading update

Order intake in the period was ahead a mid-teen percentage year-on-year on an
OCC(1) basis, with all divisions making encouraging progress. Our orders
continue to be driven largely by customers' operational spend. In addition, in
the period we saw a return of  a relatively high level of large project
activity.

Revenues in the three months grew 18% year-on-year (OCC) against a more
supply-chain disrupted comparative period. Sales benefited from both volume
and selling price increases, with all divisions and regions ahead year-on-year
and with particularly strong growth in the Americas.

We retain a strong balance sheet.  As expected, the period saw a strong cash
performance, reflecting the high level of receivables outstanding at the end
of 2022, resulting in net cash at 2 April 2023 of £133.0m (December 2022:
£105.9m).

Growth+ strategy

We launched our Growth+ strategy at a Capital Markets Event in November 2022.
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 to eliminate methane emissions. In carbon capture
and storage there has been a marked pick-up in enquiries and in quotation
activity in the period when compared to the prior year.

Our Customer Value initiative, which is about putting the customer at the
forefront of everything we do, is making encouraging progress. The 'Achieving
Customer Excellence' (ACE) programme pilots have been successful,
significantly reducing the lead times of the products targeted. We have
identified a number of further opportunities where the programme can be
applied as a priority, before rolling-out ACE to the rest of the Group.

Outlook

The outlook for our end markets remains positive and our record order book
gives us good visibility into the second half of the year. We are encouraged
by the early momentum we are seeing with our Growth+ strategy and are
investing in the programme as planned. Whilst we are cognisant of the
continuing global macro-economic uncertainty, we now expect 2023 adjusted
operating profit to be slightly ahead of our earlier expectations.

Rotork will publish 2023 half-year results on Tuesday 8 August 2023.

¹OCC is organic constant currency results restated at 2022 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 16 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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