Orders up at engineering group Rotork but sterling’s strength pushes down half-year profits

August 5, 2014

The strong pound has hit profits at Bath-based specialist engineering group Rotork, taking the shine off a record half-year order intake and increased activity in many of its markets.

First-half pre-tax profit at the group, which makes high-value valves controls and actuators for the global oil and gas industry, fell by 3.3% to £61.5m on revenues 4.4% higher at £278.5m. The firm’s order book is worth £203m, up 7.4% from December.

Chief executive Peter France said: “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.

“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.”

Last month Rotork completed the acquisition of Xylem Flow Control, a UK subsidiary of US-based global water technology Xylem for £18m. The business, which makes solenoid valves and other flow control instruments used extensively in explosion-proof zoned areas, has been renamed Rotork Midland and is now part of the Rotork Instruments division.



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