Rotork PLC
02 May 2008
2 May 2008
Rotork p.l.c.
Interim Management Statement
Rotork p.l.c., the specialist engineer, provides an Interim Management
Statement, as required by the UK Listing Authority's Disclosure and Transparency
Rules, for the three month period to 31 March 2008.
Order intake has continued the strong trend which was referred to at the time of
the preliminary results, being 25% higher in the first quarter than the same
period of 2007. On a like for like basis excluding the Remote Control Sweden
(RCS) acquisition order intake was up 19%. Increased demand for Rotork's
products was spread across our geographic regions, end user industries and
business divisions. Cost pressures continue to be mitigated by sourcing and
engineering cost reduction initiatives. The order book at the end of March
reached £125m, which is 28% up on the position as at 31st December 2007 or,
adjusting for the RCS order book on acquisition it increased by 24%.
The RCS integration process is proceeding well and order intake in this business
is ahead of our expectations for the first quarter. The Singapore business of
RCS has already been incorporated into the local Rotork subsidiary and we are
confident that the USA and German offices will complete their integration plans
by the half year. The initial indication is that the RCS product has been well
received by the Rotork sales channels and we are anticipating a positive
contribution from this business in the current year.
The strengthening of our two major trading currencies, the Euro and the US
Dollar, against Sterling, is continuing to be of benefit. While the dollar has
traded within a fairly tight band against Sterling, the Euro has gained over 15%
against the average rates prevailing last year. Revenue denominated in Euros
represents around 30% of the total and this could potentially represent
significant upside opportunity to us in the current year. The group continues to
maintain a sound balance sheet.
Other than the acquisition mentioned above, there have been no other material
events or transactions affecting the Group in the period. We anticipate good
levels of growth for both the half and full year.
For further information, please contact:
R.E. Slater
Group Finance Director Tel: 01225 733224
Jon Simmons / Sophie Kernon
Financial Dynamics Tel: 020 7831 3113
This information is provided by RNS
The company news service from the London Stock Exchange
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