3rd Aug 2021 09:15
(Alliance News) - Rotork PLC on Tuesday said Chief Executive Kevin Hostetler is resigning three years into his tenure, as the company guided for earnings "progress" in 2021 following modest first-half growth.
Hostetler informed the board of his decision to return to the US with his young family next year, Rotork said. He is committed to a handover period, which is expected to finish by the end of June 2022. Rotork has started the search for a replacement and will consider internal and external candidates.
Shares fell 6.5% to 339.40 pence in London on Tuesday morning, making Rotork the worst performer in the FTSE 250 index.
Rotork, a Bath-based company which makes flow-control products for the energy, water and chemical industries, hired Hostetler as chief executive in March 2018. He previously worked for US peer Idex Corp and telecoms company FDH Velocitel, before relocating from Chicago to join Rotork.
Chair Martin Lamb said: "Kevin has demonstrated impressive leadership in developing and successfully implementing our Growth Acceleration Programme.
"On leaving, he will have overseen the vast majority of this 5-year programme, which has fundamentally reshaped our core platform and processes, strengthened our management team, and positioned Rotork for a bright future."
The announcement came as Rotork reported first-half results for 2021. Revenue grew 1.8% year-on-year to GBP288.3 million from GBP283.2 million, while pretax profit rose 8.4% to GBP54.1 million from GBP50.0 million.
The Oil & Gas unit lagged, with sales down 5.6% year-on-year to GBP129.6 million from GBP137.2 million. Water & Power revenue rose 5.9% to GBP77.5 million from GBP73.2 million, and Chemical, Process & industrial was up 12% to GBP81.2 million from GBP72.9 million.
In its outlook, Rotork said it expects 2021 to be "a year of progress on a constant currency basis." The company had not previously given guidance for 2021, saying only that it was targeting mid- to high-single digit revenue growth "over time".
Rotork reinstated its interim dividend at 2.35p per share. For 2020, the company paid a total of 6.30p per share, all as a final dividend. Its last interim dividend, in 2019, was worth 2.30p per share.
"Rotork returned to underlying growth in the first half. Our strategy of focusing our sales teams on specific end markets and investing in targeted geographies and in aftermarket activities is delivering results," Hostetler said.
By Ivan Edwards; [email protected]
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