REG - Rotork PLC - Trading Update

RotorkAnnouncement

20/11/2024 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20241120:nRST8661Ma&default-theme=true

RNS Number : 8661M  Rotork PLC  20 November 2024

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 currency(1) (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
(http://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

 

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 (http://www.rotork.com) .

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTFLFITLILALIS