By Joe Hoppe
Rotork PLC said on Tuesday that first-half pre-tax profit and revenue fell due to supply chain challenges, and increased its dividend.
The maker of industrial flow control equipment posted a pre-tax profit for the six months to the end of June of £44.6m ($54.6m), compared with £50.7m for the same period a year earlier.
Revenue fell to £280.0m from £288.3m amid supply chain challenges in the first quarter, he said.
Adjusted operating profit – one of the company’s preferred measures which excludes exceptional and other one-off items – fell to £53.3m from £62.7m for the first half 2021.
However, order intake was £340.1m, compared to £298.2m for the comparable period, reflecting strong performance from its Chemicals, Process & Industrials and Oil & Gas divisions, and from successful price increases, Rotork said.
The board declared an interim dividend of 2.40 pence per share, up from 2.35 pence the previous year.
Rotork has sustained its target of mid to high single digit revenue growth and mid-twenties adjusted operating margins over time.
“We are entering the second half with encouraging momentum, a record backlog and with our supply chain improvement actions coming into effect,” Chief Executive Kiet Huynh said.
Shares at 0810 GMT were up 10.2 pence, or 4%, at 268.2 pence.
Write to Joe Hoppe at [email protected]