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Interim Results

Rotork margin slips as costs rise

08 August 2017 09:11

Industrial flow control equipment manufacturer Rotork (ROR) saw its adjusted profit before tax fall by 7.5% on an organic constant currency basis in the first half of the year, with revenues flat.

On a reported basis, revenues increased by 13.6% to £299.7m with pre-tax profit 3.7% higher at £52m.

There was an 11% currency tailwind on revenue and profit.

The operating margin fell by 70 basis points, which the company said was due to the phasing of revenue and inflationary cost increases.

Martin Lamb, executive chairman, said the oil and gas division has seen an improvement in levels of activity in upstream.

He said that although the midstream and downstream sectors remain subdued, there has been a gradual improvement in project activity levels.

There was steady progress across the water, power and industrial process markets. "As in prior years we anticipate a second half weighting and consequently expect margins to be ahead of those in the first half. Overall we anticipate that full year margins will be similar to the prior year. Based on our project visibility, current order book and its anticipated conversion to revenue, management expectations for the full year remain unchanged," Lamb added.

The company raised its interim dividend by 5.1% to 2.05p.

At 9:11am: (LON:ROR) Rotork PLC share price was +2.55p at 237.25p

Story provided by StockMarketWire.com

Related Company: ROR

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