Rotork sees reported revenue at top end of views

Rotork said it now expects reported revenue to be towards the top end of market expectations.

It continued that the trading environment is anticipated to remain challenging across most of its key markets and geographies.

"Margins are expected to be lower than the prior year, as previously indicated, but in line with market expectations," the company said.

"Currency continues to provide a tailwind, and based on current exchange rates is now expected to deliver a 10% benefit to both full year revenue and profit.

"Taking into account this assumed currency benefit, our performance to date, and anticipated shipments in the remaining two months of 2016, the Board now expects reported revenue to be towards the top end of market expectations."

Rotork said the underlying performance of the business in Q3 was broadly the same as was seen in the first half, albeit reported numbers have benefited from currency movements and a contribution from acquisitions.

"We continue to invest in infrastructure, including IT, that will improve our operational performance. In addition, good progress continues to be made on our previously-announced cost reduction programme."

Order intake for Q3 was up 22.2% (+0.1% OCC) on the comparable period in 2015, with cumulative order intake in the ten months to 30 October up 10.2% (-6.7% OCC) on the prior year.

Revenue for the third quarter was 28.9% higher (+5.3% OCC) than the comparable period, with cumulative revenue 8.3% higher (-8.6% OCC) than the prior year. The order book at 30 October was £214.0m, 15.3% ahead (-6.8% OCC) of the same point last year.