Interim Management Statement


 

TIDMROR 
 
RNS Number : 8038C 
Rotork PLC 
20 November 2009 
 

20 November, 2009 
 
 
Rotork p.l.c. 
 
 
Interim Management Statement 
 
 
 
 
Rotork p.l.c., the market leading actuator manufacturer, today issues its 
Interim Management Statement covering the period from 1 July to 20 November 
2009. 
 
 
Trading 
In the period, Group revenues and margins remained strong, although, as 
expected, the timing of order placements has remained challenging.Order intake 
in the third quarter was 3.4% lower than the comparative period in 20081. At 31 
October the order book stood at GBP125 million1. Certain markets and geographic 
areas that we serve are showing signs of increased activity, from which we 
expect to benefit in 2010. 
 
 
We continue to manage our cost base and obtain savings from the supply chain. 
This has enabled us to mitigate the majority of the material cost increases that 
we have seen and, in a number of cases, reverse the upward trend. 
 
 
Rotork Controls, the largest division, is performing well overall and, with the 
exception of Rotork Process Controls a small business within the division, has 
seen order intake revenues and profit all ahead of last year1. 
 
 
Rotork Fluid Systems is heavily focused on the Oil and Gas market and has 
suffered the most from project delays. However the strong order book at the 
beginning of the year has supported revenues. 
 
 
Rotork Gears has been under more pricing pressures than the other two divisions, 
however it is seeing increased activity from its core markets. 
 
 
Acquisition 
As previously announced, we have concluded the acquisition of the business and 
assets of Flow-Quip Controls Inc based in Tulsa, Oklahoma, USA for $8 million in 
cash. This business will report into the Rotork Fluid Systems division and this 
acquisition will strengthen our presence in the targeted South American market 
as well as domestically in the USA. 
 
 
Financial position 
Strong operating cash flows further strengthened our balance sheet and the 
recent acquisition was funded entirely out of free cash flow. 
 
 
Directorate Change 
Bob Slater has indicated his intention to retire from his position as Group 
Finance Director on 31 March 2010. Jonathan Davis, currently Divisional Finance 
Director of Rotork Controls division, will succeed Bob and become Group Finance 
Director on 1 April 2010. 
 
 
Roger Lockwood, Chairman of Rotork, commented: 
 
 
"Bob has made a significant contribution to the development of Rotork over the 
past 21 years. On behalf of the entire Board, I would like to extend our thanks 
to Bob and wish him well for the future. 
 
 
Rotork's succession planning process has identified Jonathan Davis as the best 
candidate to take Rotork forward to the next stage of its development and we 
look forward to him joining the Board in 2010. Jonathan joined Rotork in 2002 as 
Group Financial Controller, moving to his current role of Divisional Finance 
Director, Rotork Controls Division on 1 January 2008" 
 
 
Other than the acquisition of the Flow-Quip Controls Inc business, the 
retirement of Bob Slater and the appointment to Group Finance Director of 
Jonathan Davis, there have been no material events or transactions affecting the 
Group in the period. 
 
 
 
 
Outlook 
Sales revenue to date and the strength of the order book support our view that 
we expect to achieve profits for the current year at the upper end of market 
forecasts. 
 
 
Following a period of slower order intake, certain markets and geographic areas 
that we serve are showing signs of increased activity, from which we expect to 
benefit in 2010. Nevertheless, we anticipate the current competitive environment 
will remain challenging for some time, although we are encouraged that project 
visibility and the number of quotations remain positive. 
 
 
The continued weakness of sterling continues to benefit the Group's competitive 
position and reported trading results. 
 
 
 
 
Notes 
 
 
12009 figures quoted are at actual exchange rates and 2008 comparisons are as 
previously reported. 
 
 
2Rotork will be announcing its Preliminary results for the year ending 31 
December 2009 on 2 March 2010. 
 
 
 
 
For further information, please contact: 
 
 
+------------------------------------+------------------------------------+ 
|                  Rotork p.l.c.     |                                    | 
+------------------------------------+------------------------------------+ 
|                  Peter France,     |                  Tel: 01225 733    | 
|                  Chief Executive   |                  214               | 
+------------------------------------+------------------------------------+ 
|                  Bob Slater,       |                  Tel: 01225 733    | 
|                  Finance Director  |                  224               | 
+------------------------------------+------------------------------------+ 
|                                    |                                    | 
+------------------------------------+------------------------------------+ 
| Financial Dynamics                 |                  Tel: 020 7269     | 
|                                    |                  7291              | 
+------------------------------------+------------------------------------+ 
|                  Jon Simmons /     |                                    | 
|                  Sophie Kernon     |                                    | 
+------------------------------------+------------------------------------+ 
 
 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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