The most gratifying aspect of Rotork 's (ROR) beating consensus expectations for full-year earnings, says chief executive Peter France, is that it was achieved across all the group’s business segments. Shareholders will probably be just as enamoured by yet another double-digit increase in the valve-tap manufacturer's dividend. Rotork’s record order intake translated into adjusted operating profits of £151m (from £132m in 2012) on a margin up 40 basis points to 26.2 per cent.
Worries that Rotork’s performance could suffer from its exposure to the oil and gas sector have proven unfounded, with sales from the division up by a quarter. Demand for the group’s actuators (valve-control devices) has surged as oil and gas drillers have come under increasing pressure to improve operational safety.
The group’s revenue growth was also augmented by a quartet of acquisitions made during the year, including the Schischek group of companies. But even like-for-like revenues were up 6 per cent on a constant-currency basis. The company's international expansion continues with yet another acquisition announced today: the group has agreed to buy Seoul-based valve and accessories manufacturer Young Tech for £64m in cash.
ROTORK (ROR) | ||||
---|---|---|---|---|
ORD PRICE: | 2,785p | MARKET VALUE: | £2.4bn | |
TOUCH: | 2,784-2,791p | 12-MONTH HIGH: | 3,097p | LOW: 2,331p |
DIVIDEND YIELD: | 1.7% | PE RATIO: | 24 | |
NET ASSET VALUE: | 382p* | NET CASH: | £69m |
Year to 31 Dec | Turnover ($bn) | Pre-tax profit ($bn) | Earnings per share (¢) | Dividend per share (p) |
---|---|---|---|---|
2009 ** | 354 | 91 | 74 | 28.4 |
2010 ** | 381 | 98 | 81 | 32.5 |
2011 ** | 448 | 113 | 93 | 37.3 |
2012 | 512 | 124 | 103 | 43.0 |
2013 | 578 | 138 | 115 | 48.1 |
% change | +13 | +11 | +12 | +12 |
Ex-div: 9 Apr Payment: 19 May *Includes intangible assets of £159m, or 183p a share *Excludes special dividends: 11.5p in 2011, 2010 and 2009. |