Rotork delivers 'strong sales growth', launches £50m buyback

(Sharecast News) - Industrial flow control equipment manufacturer Rotork said on Tuesday that it had delivered "another year of strong sales growth and margin progress", leading it to launch a new £50.0m share buyback. Rotork said order intake was up 2.8% at £744.3m, while revenues were 4.9% firmer at £754.4m and adjusted operating profits had grown 8.5% to £178.4m. Adjusted operating profit margins expanded 100 basis points to 23.6%.

On a divisional level, oil & gas and water & power revenues grew low double digits year-on-year, while Rotork's chemical, process & industrial unit returned to sales growth in H2.

The FTSE 250-listed group stated closing net cash was £125.3m, broadly unchanged over the period after the return of £113.0m to shareholders via dividends and share buyback, while cash conversion was strong at 119%, driven by improved net working capital to sales.

As a result, Rotork announced a buyback programme to repurchase up to £50.0m in ordinary shares, stating its financial flexibility had enabled it to pursue strategic investments and remain active in looking for suitable opportunities, consistent with its Growth+ strategy.

Rotork also announced it had agreed to acquire South Korean actuators manufacturer Noah for £44.0m, financed from cash and existing committed borrowing facilities.

As of 0940 GMT, Rotork shares were up 7.61% at 336.40p.

Reporting by Iain Gilbert at Sharecast.com