5th Aug 2014 08:34
LONDON (Alliance News) - Rotork PLC Tuesday reported a slight rise in revenue but a small drop in pretax profit in the first half of 2014, saying it saw an increased level of activity in most markets but that performance will be weighted toward the second half of the year, as it added itself to the slew of companies reporting a negative impact on its results from currency movements.
Revenues for the FTSE 250-listed manufacturing firm were up to GBP278.5 million in the six months ended June 30 against GBP276.1 million in the same period a year ago, as Rotork hit a record half-year order intake of nearly GBP303 million.
But profits were down to GBP61.5 million from GBP63.6 million in the first half of 2013, hit by a 9% adverse currency impact.
Despite the fall in profits, the firm hiked its dividend 6.4% to 19.2 pence from 18.05 pence a year earlier.
The company said sterling strength had a significant impact not only on its profits, but on its order book over the period. Though it managed a record order intake of GBP302.7 million, up 2.9% year-on-year, currency headwinds hit that number to the tune of GBP23.5 million, or 7.2%.
Within its business units, Rotork Instruments put up a strong performance in the first half, with order intake rising 8.3% and revenue jumping 13%. That was offset in part by a weaker performance in its Rotork Gears business, where order intake fell 6.3% as new customer wins failed to translate into order intake.
"During the first half, we saw an increased level of activity in many of the markets that we serve and our geographic reach and broad product portfolio enabled us to secure a number of major projects. This resulted in record order intake and first half revenue despite a strengthening currency headwind," said Peter France, Chief Executive of Rotork.
"For the full year, we anticipate that as in previous years the group's performance will be more weighted towards the second half. Our order book, increased project activity and wide market exposure provide the board with confidence of achieving further progress in the full year," France added.
Rotork shares were up 3.0% to 2,836.00 pence in early trade Tuesday, making it the third biggest riser on the FTSE 250.
By Sam Unsted; [email protected]; @SamUAtAlliance
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