Rotork continues to power ahead and is rewarding shareholders with a special dividend of 11.5p a share after reporting a record performance in 2009. The actuator to gearbox giant had an uneven year with a strong start followed by a slowdown as project delays and funding issues hit in some areas. Currency gains flattered the result with profits up just 5 per cent at constant currency and sales edging up slightly
Rotork Controls, the group's biggest division and the market leader in electric valve actuation, increased operating profits by 26 per cent to £72.6m on sales 11 per cent higher at £227m. Rotork Fluid Systems also delivered an improved result thanks to restructuring in production, even though the business was hit by delays due to its heavy exposure in the oil and gas industry. Higher raw material costs held back its gearbox arm as profits dipped, but management is confident of winning new work, particularly in India where a new facility will open shortly. Last year, Rotork acquired US-based Flow-Quip for $8m (£5.4m) in a move that should enhance its product suite.
Numis Securities upgraded its 2010 adjusted pre-tax profit estimate by 5 per cent to £98m, giving EPS of 80p (£91.5m and 74.9p in 2009).
ROTORK (ROR) | ||||
|---|---|---|---|---|
| ORD PRICE: | 1,317p | MARKET VALUE: | £1.14bn | |
| TOUCH: | 1,317-1,318p | 12-MONTH HIGH: | 1,395p | LOW: 668p |
| DIVIDEND YIELD: | 1.3% | PE RATIO: | 18 | |
| NET ASSET VALUE: | 192p* | NET CASH: | £78.4m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2005 | 175 | 36.7 | 28.6 | 15.80 |
| 2006 | 207 | 46.1 | 36.4 | 18.20 |
| 2007** | 236 | 57.3 | 45.6 | 21.70 |
| 2008** | 320 | 75.8 | 62.0 | 16.75 |
| 2009** | 354 | 90.9 | 74.2 | 17.25 |
| % change | +10 | +20 | +20 | +3 |
Ex-div: 7 Apr Payment: 7 May *Includes intangible assets of £40.8m, or 47p a share **Excludes special dividends of 11.5p in 2009, 11.5p in 2008 and 9.3p in 2007 | ||||
