30 April 2021
Activity continued to improve in the first quarter. COVID-19 uncertainty remains
Rotork plc ("Rotork"), the global flow control and instrumentation group, today issues the following trading update covering the first quarter period from 1 January to 4 April 2021 ahead of its Annual General Meeting to be held later today.
All our production facilities are currently open and operating at close to normal output levels. Several were however impacted by COVID-19 closures early in the period. Whilst every effort is being made to keep our facilities open, we will not hesitate to close them if required or if we believe there is any risk to our colleagues or their families or friends.
Performance in the period was in-line with our expectations. Order intake (on an organic constant currency basis, "OCC") was mid-single digits below the 2020 comparator, which was only modestly affected by COVID-19. Revenue was up mid-single digits year-on-year on an OCC basis, in part reflecting the weighting of first half 2020 sales to the second quarter.
Like many global businesses we are seeing elevated logistics costs and disruption to some supply routes as well as commodity cost escalation. In order to mitigate the higher logistics costs we introduced temporary surcharges on the most affected routes earlier this year. Commodity cost inflation is anticipated to be largely offset by our January price increase.
Our Growth Acceleration Programme ("GAP") is on track. We continue to see the benefits of our market re-alignment which was completed a year ago. Our investments in Rotork Site Services and in innovation and new product development are also yielding benefits. Our GAP priorities in 2021 include supply chain optimisation and our IT solutions roll-out.
Rotork continues to be highly cash generative with a strong balance sheet and net cash of £190.8m at 4 April 2021 (£178.1m at 31 December 2020). The current cash position reflects the decision to pay the £54.9m dividend (6.3p per share) in respect of 2020 in one payment (on 21 May 2021).
We continue to strengthen our business and are well placed to benefit from recovering demand. Whilst the outlook for our end markets is improved, COVID-19 related uncertainty remains. We remain committed to delivering sustainable mid to high single digit revenue growth and mid 20s adjusted operating profit margins over time.
Rotork will publish 2021 half-year results on Tuesday 3 August 2021.
Rotork plc Tel: +44 (0)1225 733 200
Kevin Hostetler, Chief Executive
Jonathan Davis, Finance Director
Andrew Carter, Investor Relations Director
FTI Consulting Tel: + 44 (0)20 3727 1340
Nick Hasell / Susanne Yule
Rotork is a market-leading global provider of mission-critical flow control and instrumentation solutions for oil & gas, water and wastewater, power, chemical, process and industrial applications. We help customers around the world to improve efficiency, reduce emissions, minimise their environmental impact and assure safety. Rotork employs about 3,400 people, has manufacturing facilities in 20 locations and serves 173 countries through a global service network. Its shares have a premium listing on the London Stock Exchange (symbol: ROR) and are a constituent of the FTSE 250 index. For more information please visit www.rotork.com.