Rotork plc (ROR.L) reported that its first-half profit before tax increased to 54.15 million pounds from 49.97 million pounds, previous year. Earnings per share was 4.7 pence compared to 4.4 pence. Adjusted operating profit was 62.7 million pounds, 2.4% higher year-on-year (6.5% OCC) reflecting increased sales and benefits from the Growth Acceleration Programme which were partly offset by foreign exchange headwinds and significantly higher logistics costs. Adjusted earnings per share was 5.5 pence compared to 5.4 pence.
First-half revenue was 288.26 million pounds, 1.8% higher year-on-year (5.7% OCC). Group order intake decreased 0.8% year-on-year, but increased 3.2% on an OCC basis, to 298.2 million pounds.
The Group noted that its orders and revenues were higher year-on-year on an OCC basis driven by encouraging performances from Water & Power and Chemical, Process & Industrial Divisions.
Rotork stated that its target is to deliver mid to high single-digit revenue growth through a combination of organic growth and acquisitions. The Group is targeting mid-20s adjusted operating margins over time through simplifying core business, manufacturing improvements and development of global supply chain.
Separately, Rotork plc announced that Kevin Hostetler has decided to step down from the Board and as Chief Executive Officer. The process is expected to conclude by 30 June 2022. The Board has commenced the search for a new CEO which will consider both external and internal candidates.
The Board declared an interim dividend of 2.35 pence per share. The interim dividend will be payable on 24 September 2021 to shareholders on the register on 20 August 2021.
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