Bath-based global engineering group Rotork this week said it saw opportunities for it to increase its market share despite a 28% fall in annual pre-tax profits caused by tough trading conditions.
The group, which makes highly specialised valves for the international oil and gas industries, also said a cost management programme introduced last year to ease the impact of the marked slowdown in its markets was making encouraging progress. 
Chief executive Peter France described last year as “challenging” with many of its key markets impacted by the oil price weakness, political instability and the slowdown in China.
These combined to push pre-tax profits down from £141.2m in 2014 to £101.9m on revenue 11.9% lower at 546.5m. However, Rotork said its performance had been in line with guidance it gave to the market last November.
“We were encouraged by the progress of our accelerated cost management programme in 2015 and further actions to mitigate the effect of end market weakness will remain a key focus in the current year,” said Mr France.
“We continue to see opportunities to gain market share by expanding our product portfolio and through both organic development and acquisition. By continuing to implement our strategy for growth and targeted investment we will ensure that Rotork is well placed to make further progress over the medium to long term.”
During the year Rotork invested £147.6m in six acquisitions to expand its product portfolio and technology, widen its geographical reach and give it access to new markets.
These acquisitions are continuing to be integrated into the group to drive potential revenue synergies while the firm also continues to look for further acquisition opportunities.
During the year it opened four new sales and services offices and started the move into a new factor in Italy, taking its total to 31 manufacturing sites, 73 national offices, and 84 regional locations in 38 countries.
Despite the challenging conditions, the group said the long-term drivers of its markets remained positive. “Population growth, urbanisation and automation [are] continuing to drive increased demand for flow control products and services,” it said.
Its customers were also increasingly focused on reducing power consumption, increasing efficiency, maximising cost reduction, improved safety and minimising their carbon footprints, which would drive long-term growth in its markets.
Chairman Martin Lamb, in his first year in the post, said: “Rotork has delivered a robust set of results despite increasingly difficult trading conditions.
“Although we do not expect conditions to improve in the near term, the increasing diversity of our end markets and geographies, together with our strong market positions, leave us well placed to navigate the current turbulence whilst continuing to put the building blocks in place for superior medium to long term growth.
At times such as these, the fundamentals of the business are tested to the full. This includes the appropriateness and resilience of the strategy, the strength of our market positions, the quality of the management, and the cohesiveness of our culture and values. I have found Rotork to be in good shape in all these respects.”
