Rotork order intake rises on price increases, revenue decreases on supply chain problems

Rotork shares increased 2% to 263.2p in late afternoon trading on Tuesday following an adjusted order intake rise of 14% £340.1 million in HY1 2022 compared to £298.2 year-on-year.

Rotork credited an encouraging performance from its Chemical, Process and Industrial, and Oil and Gas businesses for its raised order intake, along with successful price increases implemented in January and May.

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However, the firm reported a statutory revenue dip of 2.9% to £280 million compared to £288.3 million as a result of supply chain challenges.

Rotork confirmed an operating profit fall of 12.9% to £44 million from £50.6 million, alongside an operating margin slide of 1.8%to 15.7% against 17.5%.

The company noted a pre-tax profit decrease of 12% to £44.6 million compared to £50.7 million.

The engineering firm said it forecast profit and revenue growth in HY2, and added it was positioned to deliver positive FY 2022 results despite macro-economic headwinds.

“We enter the second half with encouraging momentum, a record order book, and with our supply chain improvement actions taking effect,” said Rotork CEO Kiet Huynh.

“Whilst forecasting remains challenging due to geopolitical and macroeconomic uncertainties we continue to expect our full year results will have a greater than usual weighting to the second half, which will be even more pronounced than our previous expectations if recent sterling weakness continues.”

“Our progress to date confirms that we are well positioned to deliver profitable growth.”

Rotork announced an EPS drop of 11.4% to 3.9p from 4.4p the year before.

However, Rotork raised its HY1 dividend 2.1% to 2.4p compared to 2.3p in HY1 2021.

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