By Joe Hoppe
Rotork PLC said Tuesday that first half pretax profit together with revenue slipped due to supply chain challenges, and raised its dividend.
The industrial flow-control equipment manufacturer posted a pretax profit for the six months to the end of June of 44.6 million pounds ($54.6 million), compared with GBP50.7 million for the same period a year earlier.
Revenue slipped to GBP280.0 million from GBP288.3 million amid supply chain challenges in the first quarter, it said.
Adjusted operating profit–one of the company’s preferred metrics which strips out exceptional and other one-off items–fell to GBP53.3 million from GBP62.7 million for the first half of 2021.
However, order intake stood at GBP340.1 million, up from GBP298.2 million for the comparable period, reflecting good performances from its chemical, process-and-industrial and oil-and-gas divisions, and successful price increases, Rotork said.
The board declared an interim dividend of 2.40 pence a share, up from 2.35 pence a year prior.
Rotork backed its target of mid-to-high single-digit revenue growth and mid-20s adjusted operating margins over time.
“We enter the second half with encouraging momentum, a record order book, and with our supply chain improvement actions taking effect,” Chief Executive Kiet Huynh said.
Shares at 0810 GMT were up 10.2 pence, or 4%, at 268.2 pence.
Write to Joe Hoppe at [email protected]
