Interim Results

Rotork PLC
05 August 2004

5 August 2004

                                 Rotork p.l.c.

                              Interim Announcement


Rotork p.l.c., the international specialist engineering group, announces
unaudited results for the interim results for the six months ended 30 June 2004.

Financial Highlights
     
•    Turnover up 4% to £66.8m and by 9% at constant currency
•    Profit before tax, excluding goodwill and exceptional items, increased
     by 7% to £14.2m and by 18% at constant currency
•    Net margin up 0.6% despite impact of currency
•    EPS pre goodwill and exceptional items up 9%
•    Interim dividend of 5.35p added to the special interim dividend paid on 28 
     May giving a total interim dividend of 11.20p for 2004 (2003: 5.25p)

Operational review
     
•    Record order book up 18% since year-end 2003
•    AWT and new IQT ranges exceeded expectations
•    Far East region particularly active - especially in power and water markets
•    Rebound in US market - encouraging increase in business from water
     utilities

Chief Executive Bill Whiteley, commenting on the results said:

'I am pleased to report continued growth in the business during the period. It
is also very encouraging to see that order input has outperformed sales,
resulting in a record order book which gives us confidence of continued
progress. If order input continues to be buoyant and there is no further
strengthening of sterling, output and profit levels will increase in the second
half in line with our expectations.'


For further information, please contact:

  Rotork p.l.c.                                      Tel:  [phone]
  Bill Whiteley, Chief Executive
  Bob Slater, Finance Director

  Financial Dynamics                                 Tel:  [phone]
  Peter Otero


REVIEW OF OPERATIONS

Financial Results

We are pleased to report continued growth in the business during the period.
Turnover increased by 4% despite the effect of a strengthening currency. At
constant currency, the business saw turnover increase by 9%. Operating profit
increased by 7%, but again at constant currency this would have been
significantly more, increasing by 18%. Orders into the business outperformed
sales output leading to a record order book level.

The profile of output, oriented towards the second quarter, has led to an
increase in receivables which, coupled with an increase in inventory ahead of a
strong July programme, has resulted in a lowered operational cash flow.  Cash
flow has also been impacted by investment into extending our Leeds production
facility, totalling £0.8m, returning £4.9m to our shareholders via an enhanced
interim dividend, a £5m cash contribution into the UK defined benefit pension
scheme, and the acquisition of Deanquip in January for £0.8m.

Operating Review

Order intake in the first half of 2004 was relatively robust, recording an 11%
increase over the comparative period and a 9% increase over the second half of
2003.  On a constant currency basis the order intake increased 16%.  The order
book at the end of June was 18% ahead of the end of 2003 and 7% ahead of the
same period in 2003, despite erosion of values caused by the decline in the US$
and related currencies in the Far East.

Electric Actuators

Order intake was up 8% on the comparative period which left the order book up
13% over the end of year position.  We again experienced quite significant
shifts in the end user and geographic destination markets for our actuators.
The Far Eastern region was particularly active with the majority of products
being sold into the power and water markets.  The Americas saw a strong rebound
from the poor first half of 2003 with a welcome resurgence of business from the
US water utilities, this was in spite of quiet markets in Latin America and
Canada.  The Middle East was active with the emphasis on oil and gas projects.
Europe suffered from lower levels of Eastern Europe oil and gas input, more than
offsetting a continued improvement in our power markets.  The UK as a
destination territory was generally weak, however, we did see an increase in
actuators ordered in this area for destination elsewhere.

The AWT and new IQT ranges sold very well in the period under review and
exceeded our expectations.  Both ranges, particularly the AWT, increased our
presence in the power and water markets around the world.  AWT production at the
Malaysia plant continued to increase during the period and made a positive
contribution to the results.

The trading results, held back by the severe decline in the US$ and related
currencies, showed a modest increase against the comparative period.  On a
constant currency basis we would have recorded an increase in net profits of
15%.  Good profit increases were recorded at the Bath, Rochester N.Y., and
Indian plants, coupled with growth at our Hong Kong, Australia and South Africa
sales subsidiaries.  These results were partially offset by weaker performances
from our German, Canadian, Singaporean and Japanese subsidiaries.

Rotork Fluid System

Order intake continued to grow rapidly, up 23% on the comparative period due to
a healthy level of upstream oil and gas transmission work, combined with the
recently enhanced product ranges, manufacturing facilities and sales outlets.
Encouragingly most of our sales companies are actively involved in selling our
fluid power product line and are helping widen the customer base around the
world.  As a result the order book has grown 37% since the end of 2003.

Sales recorded a 38% increase and profits a 280% increase over the modest
results recorded in the first half of 2003.  Profit increases were recorded at
our Italian plant and most of the sales subsidiaries.  Additionally the US
operation recorded a useful profit against a loss at this time last year.
Deanquip Valve Automation, the Australian fluid power actuator distributor
acquired in January, made a positive profit contribution.

Rotork Gears

The market for valve gearboxes and related products was quite healthy and the
division recorded an 11% increase in order intake in the period.  The order book
grew by 24% from the end of 2003.

Although sales increased by 7%, profits were constant due in the main to the
impact of US$ sales from sterling and euro based plants.  The purchase of the
portion of the plant in Leeds which we did not own has allowed the Gears, Fluid
System and other Rotork businesses that operate from that location to make their
operations more efficient and allow for expansion.

Dividend

The core interim dividend is to be increased by 2% to 5.35p, and will be payable
on 27 September to all shareholders on the register at 3 September 2004.
Together with the special 2004 dividend paid on 28 May this makes a total
interim dividend of 11.20p, an increase of over 100% year on year.

Outlook

The order book gives us confidence of continued progress.  The main production
plants have enhanced capacity.  If order input continues to be buoyant and there
is no further strengthening of sterling, output and profit levels will increase
in the second half of the year in line with our expectations.

BILL WHITELEY
Chief Executive
5 August 2004



Consolidated Profit and Loss Account
Unaudited
                                                            First half      First half       Full year
                                                                  2004            2003            2003
                                                                    £m              £m              £m

Turnover                                                          66.8            64.3           136.0


Operating profit                                                  13.1            12.3            26.7


Operating profit before amortisation of goodwill                  13.8            13.0            28.0
Amortisation of goodwill (all continuing operations)             (0.7)           (0.7)           (1.3)

Operating profit                                                  13.1            12.3            26.7

Profit on disposal of fixed asset (discontinued                      -             0.6             0.6
operations)

Net interest and similar income                                    0.4             0.3             0.8

Profit on ordinary activities before taxation                     13.5            13.2            28.1

Profit before tax, excluding goodwill and exceptional             14.2            13.3            28.8
items


Taxation
UK                                                               (1.7)           (1.6)           (3.9)
Overseas                                                         (2.8)           (2.8)           (5.6)

Profit on ordinary activities after taxation                       9.0             8.8            18.6

Dividend                                                         (9.5)           (4.5)          (12.6)

Retained profit                                                  (0.5)             4.3             6.0

                                                                 pence           pence           pence
Earnings per share                                                10.5            10.2            21.7
Earnings per share before goodwill amortisation                   11.2            11.0            23.3
Diluted earnings per share                                        10.4            10.2            21.6




Statement of the Group's Total Recognised Gains and Losses

                                                     First half     First half     Full year
                                                           2004           2003          2003
                                                             £m             £m            £m

Profit for the period                                       9.0            8.8          18.6

Exchange differences                                      (1.8)            1.3         (0.5)
Total recognised gains and losses for the period            7.2           10.1          18.1





Balance Sheet
Unaudited
                                                                   30 June        30 June      31 Dec
                                                                      2004           2003        2003
                                                                        £m             £m          £m
Fixed assets
Intangibles                                                           18.5           20.2        19.0
Tangibles                                                             14.1           14.0        13.6
                                                                      32.6           34.2        32.6
Current assets
Stock                                                                 20.9           18.7        18.6
Debtors                                                               37.5           32.1        33.4
Cash                                                                  18.8           23.8        32.3
                                                                      77.2           74.6        84.3

Creditors: amounts falling due within one year                      (32.9)         (30.7)      (37.8)

Net current assets                                                    44.3           43.9        46.5


Total assets less current liabilities                                 76.9           78.1        79.1

Creditors: amounts falling due after more than one year              (0.1)          (0.2)       (0.1)
Provisions for liabilities and charges                               (2.6)          (2.3)       (2.9)

Net assets                                                            74.2           75.6        76.1

Share capital                                                          4.3            4.3         4.3
Reserves                                                              69.9           71.3        71.8
Shareholders' funds                                                   74.2           75.6        76.1



Cash Flow
                                                               First half      First half    Full year
                                                                     2004            2003         2003
                                                                       £m              £m           £m

Net cash flow from operating activities                               5.5            15.6         33.8
Returns on investments and servicing of finance                       0.7             0.3          0.6
Taxation                                                            (3.6)           (3.9)        (9.2)
Net capital expenditure and financial investments
Sale of Luton property                                                  -             1.6          1.6
Other                                                               (1.9)           (1.2)        (2.1)
                                                                    (1.9)             0.4        (0.5)
Acquisitions and disposals                                          (0.8)               -            -
Dividends paid                                                     (13.2)           (7.6)       (12.1)
Financing
Purchase of own equity ordinary shares                                  -           (1.2)        (1.2)
Issue of own equity ordinary shares                                   0.3               -          0.5
Other                                                                   -           (0.2)        (0.1)
                                                                      0.3           (1.4)        (0.8)

(Decrease) / increase in cash and term deposits                    (13.0)             3.4         11.8


Notes to the Interim Report
     
1.   Status of Interim Report

     The interim report was approved by the Directors on 5 August 2004.  It 
     should be read in conjunction with the 2003 Annual Report, which contains 
     the most recent audited financial statements.

     The financial information for the six months to 30 June 2004 and the 
     comparative figures for the six months to 30 June 2003 are unaudited and 
     have been prepared on the basis of the accounting policies set out in the 
     Group's statutory accounts for the year ended 31 December 2003.

     The financial information for the year ended 31 December 2003 is an 
     abridged version of the full accounts for that year, which received an 
     unqualified report from the auditors and which have been filed with the 
     Registrar of Companies.

     The 31 December and 30 June 2003 financial information has been restated to
     reflect the adoption of UITF Abstract 38, Accounting for ESOPs.  As a 
     result the former fixed asset investment in own shares is now shown within 
     shareholders' funds.  Earnings per share have been recalculated to exclude 
     these shares from the weighted average ordinary shares in issue.
     
2.   Geographical analysis

                                         Turnover          Profit before interest,    Profit before interest
                                                              tax and goodwill               and tax
                                                                amortisation
                                 First    First     Full    First    First     Full   First    First     Full
                                  half     half     year     half     half     year    half     half     year
                                  2004     2003     2003     2004     2003     2003    2004     2003     2003           
                                    £m       £m       £m       £m       £m       £m       £m      £m       £m
Analysis by operation
Electrics                         50.6     51.3    105.6     12.1     11.8     24.4    11.8     11.6     24.0
Fluid system                      10.0      7.2     18.8      1.0      0.3      2.0     0.8      0.0      1.6
Gears                              8.3      7.8     16.3      1.5      1.5      2.9     1.3      1.3      2.4
Unallocated costs                    -        -        -    (0.8)    (0.6)    (1.3)   (0.8)    (0.6)    (1.3)
Inter-segmental elimination      (2.1)    (2.0)    (4.7)        -        -        -       -        -        -
Continuing operations             66.8     64.3    136.0     13.8     13.0     28.0    13.1     12.3     26.7
Discontinued operations              -        -        -        -      0.6      0.6       -      0.6      0.6
                                  66.8     64.3    136.0     13.8     13.6     28.6    13.1     12.9     27.3

Analysis by geographical
origin
Europe                            33.8     33.2     70.1      8.7      8.4     19.9     8.3      7.9     19.0
Americas                          18.8     19.1     40.0      2.8      2.4      4.0     2.6      2.2      3.7
Rest of world                     14.2     12.0     25.9      3.1      2.8      5.4     3.0      2.8      5.3
Unallocated costs                    -        -        -    (0.8)    (0.6)    (1.3)   (0.8)    (0.6)    (1.3)
Continuing operations             66.8     64.3    136.0     13.8     13.0     28.0    13.1     12.3     26.7
Discontinued operations              -        -        -        -      0.6      0.6       -      0.6      0.6
                                  66.8     64.3    136.0     13.8     13.6     28.6    13.1     12.9     27.3


Turnover - analysis by destination
                                                                                     First    First     Full
                                                                                      half     half     year
                                                                                      2004     2003     2003 
                                                                                        £m       £m       £m 

Europe                                                                                29.6     29.2     62.4
Americas                                                                              19.9     19.8     41.6
Rest of world                                                                         17.3     15.3     32.0
                                                                                      66.8     64.3    136.0

Net assets by operation

                                                                                     First    First     Full
                                                                                      half     half     year
                                                                                      2004     2003     2003 
                                                                                        £m       £m       £m 

Electric                                                                              38.6     31.6     29.7
Fluid system                                                                          10.7      9.5     12.0
Gears                                                                                 10.7     10.9     10.7
Unallocated                                                                           14.2     23.6     23.7
                                                                                      74.2     75.6     76.1


Net assets by geographical origin

                                                                                     First    First     Full
                                                                                      half     half     year
                                                                                      2004     2003     2003 
                                                                                        £m       £m       £m 

Europe                                                                                36.8     25.9     23.8
Americas                                                                              17.2     19.6     16.7
Rest of world                                                                          6.0      6.5     11.9
Unallocated                                                                           14.2     23.6     23.7
                                                                                      74.2     75.6     76.1


     The 2003 interim net assets have been restated to reflect the 
     re-designation of certain assets as unallocated.
     
3.   Earnings per share

     Earnings per share is calculated using the profit attributable to the 
     ordinary shareholders for the period and 85.7 million shares (six months to 
     30 June 2003: 85.9 million; year to 31 December 2003: 85.7 million) being 
     the weighted average ordinary shares in issue.

     The adjusted earnings per share is based on the profit for the period
     attributable to the ordinary shareholders before the amortisation of 
     goodwill. The adjusted numbers provide a more consistent measure of 
     operating performance.

     Diluted earnings per share is calculated using the profit attributable to 
     the ordinary shareholders for the period and the weighted average ordinary 
     shares in issue adjusted to assume conversion of all dilutive potential 
     ordinary shares under the group's option schemes and Long-Term Incentive 
     Plan.

     The 31 December and 30 June 2003 weighted average ordinary shares in issue 
     have been restated to reflect the number of own shares held which are now 
     shown as a reduction in shareholders' funds.
     
4.   Reconciliation of operating profit to operating cash flow
                                                                                First  First   Full
                                                                                 half   half   year
                                                                                 2004   2003   2003
                                                                                   £m     £m     £m

Operating profit                                                                 13.1   12.3   26.7
Depreciation and amortisation                                                     1.8    1.8    3.6
Increase in stock                                                               (2.6)  (0.6)  (1.0)
(Increase) / decrease in debtors                                                (0.8)    0.9    0.3
Increase in pension prepayment                                                  (5.0)      -      -
(Decrease) / increase in creditors                                              (1.0)    1.2    4.2
Net cash flow from operating activities                                           5.5   15.6   33.8
     
5.   Shareholder information

     This interim report is being sent to all shareholders and copies are 
     available to the public from the Registered Office at the address below.  
     The interim report is also available on the company's website at 
     www.rotork.com.

     We offer shareholders a dividend reinvestment plan (DRIP) under which
     shareholders can reinvest their cash dividends in the company, by buying 
     shares in the market at competitive dealing rates.  If you have already 
     elected to join the DRIP, there is no further action for you to take.

     If you would like to join for the first time, please contact our registrars
     below.

     Lloyds TSB Registrars
     The Causeway
     Worthing
     West Sussex
     BN99 6DA

     Share dividend helpline number - 0870 241 3018
     
6.   Group information
     Secretary and registered office:
     Stephen Rhys Jones
     Rotork plc
     Rotork House
     Brassmill Lane
     Bath BA1 3JQ

     Company website:
     http://www.rotork.com/



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