Profits soar to £76.5m at Somerset manufacturing business

Profits have increased by more than 20 per cent at engineering firm Rotork over the last six months.

The North Somerset firm makes valves for oil and gas and water businesses across the world.

Operating profits rose by 22.3 per cent from £65.3m to £76.5m.

The firm said its recently introduced growth strategy is delivering with first half revenue eight per cent higher on the previous year,

Oil and gas and water and power sales are well ahead and chemical, process and industrial sals lower as a result of reduced activity in the mining sector.

Orders received were four per cent above sales and marginally ahead year-on-year OCC despite the prior period including an unusually high number of large orders.

Oil and gas and water and power orders were slightly higher whilst chemical, process and Industrial orders were slightly lower

Kiet Huynh, chief executive, said:  “I am pleased with our strong first half performance which saw sales up double digits year-on-year at OCC and adjusted operating margins up to 21.2 per cent.

“Orders grew marginally year-on-year on an OCC basis, against a strong comparison which benefitted from higher levels of large project activity.

“The benefits of the Target Segment approach under Growth+ are increasingly apparent. Target Segment sales, which represent around half of group revenue, are growing strongly, particularly in water infrastructure, desalination, chemicals and up- and mid-stream oil and gas electrification. Rotork Site Services is also growing strongly.

“The outlook for our end markets remains positive, order intake was encouraging in June and July and our order book gives us good visibility.

“Our full year expectations are unchanged and we continue to anticipate 2024 to be another year of progress on an OCC basis.”