4th Mar 2014 10:39
LONDON (Alliance News) - Rotork PLC shares jumped Tuesday after the firm reported a 13% rise in revenue for the year, boosted by record order intake across its divisions and a spate of acquisitions.
In its full-year results for 2013, the firm said revenue rose 13% to GBP578.4 million, up on the GBP511.7 million reported last year, driven by four acquisitions the firm made during the year, said Rotork. Pretax profit came in at GBP138.0 million, up 11.1% from GBP124.2 million in 2012.
Rotork's order book stood at GBP187.8 million at year-end, up 3.8% from December 2012, with order intake for the full-year also up 7.3%.
Basic earnings per share for the year rose 14.3% to 124.9 pence, up from 109.3 pence per share. The Rotork also boosting its dividend for the year with the board recommending a final dividend of 30.00 pence per share which, taken together with the 2013 interim dividend, gives a payment of 48.05 pence per share, up on the 43.00 pence last year, representing a 11.7% increase in dividends. This dividend will be payable on May 19, 2014 to shareholders on the register on April 11, 2014.
During the year, the firm successfully completed acquisitions of four businesses as it worked to continue its product portfolio expansion. These included the Schischek group of companies, which performed well in the year, said the firm, and GTA Group, a rack and pinion actuator manufacturer. The products of both acquisitions are now being sold through Rotork's network of sales subsidiaries and the process of integration is well underway.
Peter France, Chief Executive said, "Our strategy of expanding our product portfolio, geographic reach and end market exposure has enabled us to deliver another year of record order intake, revenue and profit. We continue to invest for growth, increasing our international sales network and expanding our product portfolio both organically and by acquisition to strengthen our presence in the wider flow control market."
Looking ahead, the firm remains confident that it will achieve further growth as the global markets within which it operates remain active and continue to provide the firm with opportunities, it said. The firm notes, however, that it is likely to, "experience weakness within some regions due to economic conditions and a headwind from currency."
Announced in tandem with its full-year results, Rotork said it is set to acquire the entire share capital of Young Tech Co Ltd, in a GBP64 million deal, funded from cash reserves and existing bank facilities, said Rotork,
The firm said GBP60 million is payable on completion with the remaining GBP4 million deferred for 12 months, and contingent on certain performance criteria.
"The acquisition of YTC is in line with Rotork's strategy of extending its offering of flow control and pressure control products. The acquisition further enhances and expands Rotork's position in the Asia-Pacific market," said Rotork.
Seoul-based YTC is a manufacturer and supplier of valve positioners and accessories.
Shares in Rotork were trading up 5.07% at 2,776.00 pence pence per share Tuesday morning, one of the biggest gainers on the FTSE 250.
By Alice Attwood; [email protected]; @AliceAtAlliance
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