Rotork PLC on Tuesday raised its dividend and reaffirmed guidance following strong growth in the first half.
The Bath, England-based provider of flow control solutions said in the first six months of 2024, pretax profit rose 16% to £69.7 million from £60.2 million the year before.
Revenue increased 8.0% to £361.4 million from £334.7 million, while order intake fell 3.2% to £374.4 million from £386.9 million.
Rotork raised its interim dividend 7.8% to 2.75 pence per share from 2.55p previously.
Strategic focus on Target Segment sales, which account for half of revenue, delivered strong growth over the period, particularly in water infrastructure, desalination, chemicals and oil & gas electrification.
Oil & Gas and Water & Power revenue grew 17% and 16% respectively, whilst reduced activity in the mining sector resulted in an 8.7% decline in sales from Chemical, Process & Industrial.
Chief Executive Officer Kiet Huynh said: ‘The outlook for our end markets remains positive, order intake was encouraging in June and July and our order book gives us good visibility. Our full year expectations are unchanged and we continue to anticipate 2024 to be another year of progress.’
For the full year, the company aims to achieve mid-to-high single-digit sales growth, down from 12% growth in 2023. Margins are expected to be in the mid-twenties, increasing from 21% previously.
Rotork shares were up 0.2% to 330.94 pence each in London on Tuesday morning.
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