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(Alliance News) - Rotork PLC on Wednesday reported a "resilient" performance in the first ten months of 2020 and said it expects its adjusted operating profit to be in line with current market forecasts.
The Bath, England-based industrial flow control equipment manufacturer said order intake in the four months to November 1 showed sequential improvement, with the decline slightly less than the 16% experienced in the first half. Large project activity has remained subdued, the company noted.
During the period, Rotork said its revenue was at 97% of the 2019 level on an organic constant currency basis, an improvement on the first-half's 9.6% year-on-year decline.
Third-quarter adjusted operating profit margins, meanwhile, benefited from continued execution of the company's 'Growth Acceleration Programme' and other management actions, and Rotork said it now anticipates full-year margin progress year-on-year.
Going forward, Rotork said it remains highly cash generative with a strong balance sheet. Net cash at November 1 was GBP146.8 million compared to GBP106.1 million at the end of 2019.
"The group's performance in the first ten months has demonstrated the improved resilience of the business. Although there remains uncertainty on the continuing impact of the Covid-19 pandemic, and risks of temporary factory closures and logistics issues, we expect 2020 adjusted operating profit to be at, or slightly above, the top end of the range of current market expectations," the company said in its statement Wednesday.
Rotork shares were trading 0.8% higher in London on Wednesday at 320.40 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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