Shares in Bath-based engineering group Rotork tumbled by more than 11% when it reported a fall in new orders in a third quarter trading update.
The world-leader in the design and manufacture of specialist valves for the oil and gas industry blamed the drop on the difference between the timing of project orders and deliveries compared to the same period last year.
The announcement triggered the biggest fall on that day in the share price of any company listed on the London Stock Exchange’s FTSE 250 index. At one time Rotork shares were down by more than 11% at 249.7p – their lowest for 14 months – before reclaiming some ground in the afternoon. Since then they have recovered further and this afternoon stood at 260.3p.
The statement also showed that revenue for the three months to October 28 at the group – Bath’s largest manufacturing business – climbed 9.9% at constant currency.
The group said the results reflected a continued improvement in overall levels of activity, particularly in the downstream segment of the market. This had been led by the delivery of further phases of large projects in the Far East. The upstream market was lower than the same period last year as was the power market.
The group also said it was making “good progress” in its growth acceleration programme and had recruited a group strategy
and mergers & acquisitions director to accelerate the development of its end-market strategy and a group engineering director to bring a more uniform approach to innovation and product development opportunities.
It had also sold or closed three non-core business units while site improvement plans have been developed for eight of its largest factories which, along with a focus on higher-value components used in the manufacture of its products, will drive the savings next year.
Chief executive Kevin Hostetler said: “Based on our performance to the end of October and anticipated shipments in the remaining two months of the year, we continue to anticipate a robust financial performance in 2018 and management expectations for the full year remain unchanged.
“I am pleased with the progress we have made across all four pillars of our growth acceleration programme, where we have moved from consultation and analysis to implementation and execution.”
