Rotork PLC Trading Update (2888X)
November 23 2017 - 1:00AM
UK Regulatory
TIDMROR
RNS Number : 2888X
Rotork PLC
23 November 2017
Rotork plc
Trading update
Rotork plc ("Rotork"), the market-leading actuator manufacturer
and flow control company, issues the following trading update
covering the third quarter and the year to 29 October 2017.
Group order intake in the third quarter increased by 11.8%, or
7.9% on an organic constant currency (OCC) basis, while revenue
increased by 5.1% (+0.9% OCC), reflecting a continuation of the
slightly more favourable market trends seen during the first half
of the year. Cumulative (to 29 October 2017) order intake was up
15.3% (+6.2% OCC) on the comparable period with an 8.9% increase in
revenue (+0.8% OCC). The order book at 29 October 2017 was
GBP219.4m, 21.4% (23.2% OCC) higher than at 31 December 2016.
Order intake Q3 Cumulative YTD
OCC(2) OCC(2)
Change Change Change Change
Controls 5.3% 0.9% 13.0% 5.5%
Fluid Systems 30.2% 23.2% 18.0% 5.4%
Gears 14.4% 16.1% 24.9% 5.1%
Instruments 7.6% 5.5% 9.4% 4.3%
Group 11.8% 7.9% 15.3% 6.2%
The results for the third quarter reflect a continued
improvement in levels of activity in upstream, with a slight
increase in downstream over the comparative period in the prior
year. Midstream remained challenging. We saw good progress across
the water, power and industrial process markets. Geographically we
saw growth in the Middle East, parts of Asia, North America and
Europe while Latin America remained subdued.
Strategic progress
As previously communicated, we are committed, over time, to
returning Rotork to the higher levels of organic growth and margins
previously delivered by the Group. This will require a significant
increase in investment in new products and service, funded
primarily by a reshaping of our sales and operating
infrastructure.
The process to appoint a new Chief Executive is progressing.
Simultaneously, working with external consultants, we are engaged
in a series of reviews, to examine our routes to market, innovation
funnel, operations footprint, supply chain, talent development and
IT systems. We expect this work to yield a number of options in
support of our growth and margin objectives, and to contribute
significantly to the plans formulated by the new Chief Executive
during the course of next year. Some initial opportunities are
beginning to emerge, which we are already pursuing. The one-off
costs associated with these reviews, together with any
restructuring costs arising from early implementation, are
anticipated to be mid-single digit GBP millions for 2017, and will
be separately detailed in our published full year results.
Financial position
The Group continues to be highly cash generative with a strong
balance sheet and net debt of GBP39.0m at 29 October 2017 (GBP55.0m
at 31 December 2016).
Outlook
Based on our performance to date, anticipated shipments in the
remaining two months of the year, and a slightly reduced tailwind
from currency, results for the full year remain in line with
management expectations.
Enquiries:
Rotork plc Tel: +44 (0)1225 733
200
Martin Lamb, Executive
Chairman
Jonathan Davis, Finance
Director
Sarah Matthews-DeMers, Director of Strategy
and Investor Relations
FTI Consulting Tel: + 44 (0)20 3727
1340
Nick Hasell / Susanne
Yule
Notes
1. 2017 figures quoted are at actual exchange rates and 2016 are as previously reported.
2. OCC (organic constant currency) growth rates remove the
results of the business acquired during 2016 that were not
consistently in both periods' results and restate 2017 at 2016
exchange rates.
3. Third quarter results refer to the period from 3 July 2017 to
1 October 2017. Cumulative results refer to the period from 1
January 2017 to 29 October 2017.
4. Rotork will be announcing results for the year ending 31 December 2017 on 6 March 2018.
5. This announcement contains certain forward-looking statements
with respect to the operations, performance and financial condition
of the Group. By their nature, these statements involve uncertainty
since future events and circumstances can cause results and
developments to differ materially from those anticipated. The
forward-looking statements reflect knowledge and information
available at the date of preparation of this announcement, and
Rotork undertakes no obligation to update these forward-looking
statements. Nothing in this Trading Statement should be construed
as a profit forecast.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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