Actuator manufacturer Rotork has seen order intake, revenue and profit reach record levels in its results for the first half of 2013, despite weak economic conditions.
Revenue increased 12.3% year-on-year to £276.1m while adjusted operating profit increased 13.7% to £70.2m. Operating margin was 25.4%, compared to 25.1& last year. Profit before tax increased to £63.6m, up from £58.1m in the first half of 2012.
The order book of £208m was up 15.1% from December 2012. Order intake was 9.4% higher than the comparative period, with Rotork Fluid Systems showing the strongest growth (20.2%).
Across the divisions, Rotork said North America and parts of Asia have performed particularly well, and this has resulted in record order intake in the first half of 2013. Project visibility remains good and quote activity in the second quarter was encouraging. Whilst activity levels remain high for Rotork Fluid Systems, ongoing weak economic conditions in certain markets have impacted Controls, the electric actuator business, with weakness in some European markets and the Indian power market being particularly affected.
The integration of Schischek, acquired in January 2013, and Soldo acquired in November 2012, is “going well” and both businesses have made a “positive contribution” in the period.
Rotork has announced two further acquisitions today: GT Attuatori Group expands the pneumatic actuator portfolio, whilst Renfro Associates Inc. provides a US based valve adaption manufacturer, mirroring the service its UK based Valvekits business offers in Europe.
Rotork said the development of its new facility in Bath is “on track” and expect to move in during September. It is also expanding its facilities in Singapore and moving to new sites in Spain, Mexico and Malaysia in the second half of the year. TheLeeds based business has experienced a delay in the development of the new site and some of the costs are now likely to fall into 2014.
Peter France, Chief Executive, commenting on the results, said:
“We continue to invest for further growth and anticipate that, as in previous years, the Group's performance in 2013 will be weighted towards the second half. The order book, project activity in the broad geographic regions we serve and our diverse end market exposure provide the Board with confidence of achieving further progress in the full year."