Profits at Bath manufacturing company hit £164.5m

Revenues and profit were up at engineering firm Rotork – according to preliminary results from the company.

The firm, which specialises in making valves, said deliveries accelerated in the second half as supply chain challenges were overcome resulting in some normalisation of the order book which remained strong at period end

The company, which has its headquarters in Bath said revenue increased 12 per cent year-on-year despite a significant foreign exchange headwind which strengthened through the second half.

Sales grew 13.6 per cent year-on-year with all divisions making strong progress and adjusted operating profit was up by 14.8 per cent to £164.5m.

Chief executive Kiet Huynh said:  “We continued to make significant progress in 2023 and delivered another year of strong organic sales growth, margin improvement and good cash flow performance.

“Given the strength of our balance sheet we have today announced a £50m share buyback whilst retaining the financial flexibility to pursue strategic investments.

“The delivery of Growth+ continues and the benefits of the strategy are apparent, including in our organic sales growth performance in 2023.  Target Segments successes included upstream oil & gas electrification (including methane emissions reduction), mining and metals processing (focused on the battery value chain) and water infrastructure. Successes under Customer Value included further progress on our programme to improve efficiency, lead times and customer experience, and under Innovative Products & Services, the launch of the IQ3 Pro and smartphone app.

“We remain confident of delivering our financial ambition of mid-to-high single digit sales growth and mid-20s adjusted operating margins over time and, based on momentum in the year so far and supported by the strength of our order book, we continue to expect 2024 to be another year of progress on an OCC basis.”