Rotork pumps out profits

3rd Aug 2010 07:03

Engineering firm Rotork notched up record half year sales and profits in the first six months of 2010 as market conditions improved."We remain cautious with regard to currency movements, commodity price increases and the resulting impact these may have on the competitive landscape. However, our lean business model, strong balance sheet and existing order book provide us with confidence in achieving further progress in the full year," said chief executive Peter France.Revenue at the half year stage rose 2.2% (2.4% in constant currency terms) to £183.5m from £179.5m the year before, despite a dip in America, which had a strong first half in 2009.Adjusted profit before tax leapt 9% (7.6% in constant currency terms) to £48.3m from £44.3m in the first half of 2009.Order intake was 8.5% higher compared to the previous year, with the second quarter showing a significant improvement, up 19.3% against the same period a year ago. The value of the order book at the end of June was 7.4% higher than at 31 December 2009 at £138.6m.All three of the group's divisions showed an improvement in order intake from a year earlier. "Announcements by customers and potential customers related to new projects in the energy sector were positive in the first quarter and we expect to benefit from some of these coming through in the third and fourth quarters of 2010 and into 2011," the company said.The interim dividend has been hiked by 14.3% to 12.75p from 11.15p last year.