Bath-based advanced engineering group Rotork today said a spate of recent acquisitions and more favourable exchange rates had lifted first-quarter revenues as it hit the takeover trail again.
The group, which makes highly specialised valves for the international oil and gas industries, said its order intake and revenue edged ahead by 2.5% and 0.7% respectively. 
Currency contributed 3.1% to order intake and 3% to revenue, with acquisitions contributing 8.4% to order intake and 9.2% to revenue.
The order book at April 3 was 13.9% higher than at £189.3m than at the turn of the year. However, stripping out acquisitions, order intake and revenue fell by 9.0% and 11.5% respectively.
Rotork invested £147.6m in six acquisitions last year to expand its product portfolio and technology, widen its geographical reach and give it access to new markets. Pre-tax profits last year fell by 28% to £101.9m on revenue 11.9% lower at 546.5m as it hit hard by the oil price weakness, global political instability and the slowdown in China.
Rotork chiefs said today they anticipated that the energy markets would remain challenging throughout the year.
“However, our strategy of expanding our end markets and products organically and through acquisition has resulted in a strong product portfolio and a geographic presence that will generate continued opportunities,” they added.
The group continued to make progress on its accelerated cost reduction programme and was examining further opportunities to reduce its cost base in line with market conditions.
The group also today announced the acquisition of valve gearbox manufacturer Mastergear for $25m (£17m) from US firm Regal Beloit Corporation.
Mastergear is a leading manufacturer of manual and motorised gearboxes for valves focused on the oil and gas, water distribution and treatment, chemical processing and wider industrial markets. It has bases in the US and Italy with an operational presence in China.
The firm, employing around 55 people, will become part of Rotork’s Gears division. In the 12 months to December 31 it generated earnings of $3.7m on revenue of $22m.
Rotork chief executive Peter France said: “Mastergear has a well-regarded product portfolio that will enable Rotork to offer its customers a more comprehensive range of products and services. The acquisition is in line with our strategy and strengthens our presence in the flow control sector, including the water distribution and treatment market.”
At midday Rotork’s shares were up 5.69% at 189.6p.
