Bath manufacturer Rotork has hailed a return to growth last year after a challenging period when it was beset by supply chain issues and the aftermath of the pandemic.
The group, which designs and makes flow control equipment for the global oil, gas, water and chemical industries, increased annual pre-tax profits by 17.2% to £121.4m last year on sales up 12.8% at £641.8m.
During the year orders rose by 11% despite it increasing prices twice while it also brought in supply chain improvement measures, which reduced disruption through the year.
Among the measures were direct purchasing and forward buying of semiconductors, re-certification and re-engineering of products, securing of contracted logistics routes and tactical inventory build.
Rotork said all three of its divisions booked higher orders for the full year, with Chemical, Process & Industrial (CPI) and Oil & Gas strongly ahead as customers continued to spend on automation and environmental projects as well as maintenance and upgrade activities.
By geography, Asia Pacific revenues by destination grew mid-single digits year-on-year driven by a strong CPI performance.
Europe, Middle East & Africa (EMEA) sales grew by mid-single digits despite Rotork’s exit from Russia.
Revenues from the Americas were in the ‘high teens’ driven by Oil & Gas but with all divisions contributing to growth in the region.
Looking ahead the group said the outlook for its end markets was positive and it had entered the year with a record opening order book.
Its Growth+ strategy introduced at the end of last year with a vision to make Rotork the leader in intelligent flow control had gained momentum, it said, and was already showing benefits.
Rotork chief executive Kiet Huynh said: “I am pleased to report a resumption of organic sales growth and a strong second half performance as expected.
“This was particularly encouraging given 2022’s highly challenging backdrop which included significant supply chain disruption and a resurgence in inflation.
“The outlook for our end markets is positive and we entered the year with a record opening order book.
“Our new Growth+ strategy has momentum and we are already seeing early benefits from our focus on our strategy pillars of target segments, customer value and innovative products & services.
“Whilst mindful of the uncertain economic outlook, we expect a year of further progress in 2023.”
