Rotork: Jefferies raises target price from 2190p to 2370p, hold recommendation unchanged. UBS raises target price from 2150p to 2350p, neutral rating kept. Citigroup raises target price from 2065p to 2252p, neutral rating maintained.
At the end of October the order book stood at £190.8m, 16.5% higher than the same point last year.
Divisionally, Rotork Control's cumulative order intake at the end of October was 8.3% up on the same period last year, and said a number of markets are performing well with Russia, North America and Australia delivering particularly strong results.
Rotork Fluid Systems was the fastest growing division and order intake in the third quarter was 47.2% higher than the same period last year. Cumulative order intake to October 28th was up 32.7% on the prior year.
Cumulative order intake to the end of October in the Rotork Gears business was 22.4% ahead of the prior year.
The company added: "Based on the strong performance year to date, our record order book and diverse end market exposure, the board continues to expect further progress in the full year, with margins slightly lower than those seen in 2011."
Valve engineering group Rotork has reported a strong period of order intake since the start of July, with the third quarter at record levels and 24.9 per cent higher than the prior year.
Revenues were 9.9% up on the previous year, while cumulative revenue to October 28th was 17% ahead of the same period in 2011.
"As last year, we anticipate a strong fourth quarter in terms of revenue as projects are delivered out of the order book," the firm said.
"Due to our continued success on major international projects, we have a greater proportion than normal of our current order book due to be delivered over a longer time frame, with deliveries in 2013 and, in a number of cases, in 2014.
"The group continues to generate industry leading margins and we anticipate these will be higher in the second half than the first half, with full year margins slightly lower than the prior year. Operational gearing has been beneficial, however changes in divisional mix, with the record performance of Fluid Systems, and costs related to the introduction of a number of new products have reduced group margins."
"Whilst recognising the challenging economic environment, our record order book and diverse end market exposure provide the board with confidence of achieving further progress in the full year. We are anticipating, as in previous years, that the group's performance in 2012 will be weighted towards the second half and that margins will remain similar to those seen in 2011," revealed Peter France, Chief Executive of Rotork.
Net cash balances of £56m at the end of June were £8m higher than December 2011, with the payment of the £20m final dividend the most significant outflow.
Rotork's capital expenditure is first half weighted this year with £8m spent so far. Net working capital has increased £2m since last December and represents 25% of annualised revenue compared with 27% at the year end.
The interim dividend has been bumped up to 16.4p from 14.5p at the halfway stage in 2011.
Valve engineering group Rotork saw record half-year revenue and profit in each of its divisions, while order intake also hit new highs despite a slow-down in orders from India and China.
Boosted by recent acquisitions, revenue in the first half of the year rose 23.3%, or 17.1% on an organic constant currency (OCC) basis, to £245.9m from £199.4m in the first half of last year. Last year's acquisitions weighed in with £16m of incremental revenue in the reporting period.
Profit before tax rose 17.2% (OCC:16.9%) to £58.1m from £49.6m the year before, after taking into account amortisation of acquired intangible assets. Adjusted profit before tax rose 21.9% (OCC:16.2%) to £61.7m from £50.7m last year.
Adjusted operating profit on an OCC basis saw the following increases on a division-by-division basis: Controls +8.2%; Fluid Systems +91.3%; Gears +18.6%. The newly created Instruments division performed in line with expectations, notching up operating profits of £2.7m.
The order book at the end of June stood at a record high of £177.7m, up 13.0% from December. Order intake was 18.2% higher than in the first half of 2011, with the strongest growth in the Gears division.
The visibility of projects in the second half is good and the group expects its markets in the Middle East, South America, USA and Russia to remain active.
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