11th Mar 2025 09:29
(Alliance News) - Rotork PLC on Tuesday announced a new share buyback, and a bolt-on acquisition, alongside improved sales, margin and orders.
In response, shares in Rotork rose 7.6% to 336.20 pence each in London on Tuesday morning.
Bath, England-based Rotork provides flow control solutions for the oil and gas, water and power, and chemical industries.
Pretax profit fell 6.8% to GBP140.5 million in 2024 from GBP150.6 million in 2023.
Adjusted operating profit rose 8.5% to GBP178.4 million from GBP164.5 million in 2023 and ahead of GBP176.1 million consensus. Adjusted operating margin improved to 23.6% from 22.9%.
Revenue climbed 4.9% to GBP754.4 million in 2024 from GBP719.1 million in 2023.
At a divisional level, Oil & Gas and Water & Power revenue grew low double digits year-on-year on an organic constant currency basis while Chemical, Process & Industrial returned to sales growth in the second half. Rotork Service performed strongly, growing ahead of group revenue, the firm said.
Group order intake increased 6.1% year-on-year to GBP744.3 million, at OCC, with all divisions ahead, Rotork added.
Chief Executive Kiet Huynh said it was "another year of strong progress" with "healthy margin improvement and an excellent cash flow performance".
"Three years into the Growth+ programme we remain confident of delivering our financial ambition of mid to high single digit sales growth and mid-20s adjusted operating margins over time. We have entered 2025 with confidence and expect a year of progress on an OCC basis," Huynh added.
Rotork increased the full-year dividend by 7.6% to 7.75 pence from 7.20p, including a final payout of 5.00p.
In addition to the dividend, Rotork announced a GBP50 million share buyback reflecting its strong cash position.
"Our financial flexibility enables us to pursue strategic investments and we remain active in looking for suitable opportunities, consistent with our Growth+ strategy," the firm added.
One such investment opportunity was also announced Tuesday. Rotork said it is buying South Korean manufacturer of electric actuators Noah Actuation for an enterprise value of GBP44 million.
Rotork said the deal aligns with its end markets and key target segments, especially with Water & Power, Chemical, Process & Industrial and upstream electrification within Oil & Gas.
"Noah expands Rotork's geographical coverage in Asia Pacific and the group's electric actuator product range," the firm added.
Rotork estimates that Noah will deliver revenue and adjusted earnings before interest, tax, depreciation and amortisation of GBP17.5 million and GBP3.5 million respectively in the twelve months to December 2025.
The acquisition is being financed from Rotork's cash and existing committed borrowing facilities and is expected to close in the coming days.
CEO Huynh said the combination of Noah's products with Rotork's international sales network offers the potential for "significant sales synergies in the medium term".
By Jeremy Cutler, Alliance News reporter
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