Profits at Rotork, Bath’s largest manufacturing company, will be 10% higher than expected thanks to the weak pound, it has told shareholders.
The advanced engineering firm, which makes sophisticated valves and actuators for the dollar-denominated global oil, water and gas industries, said the fall of sterling since the EU referendum meant its financial results would be better than expected. 
As a result, it will overcome continuing weak margins on its products as a result of the low oil price over the past year and downturn in its key markets.
In a trading update for the period between July 1 and October 30, the firm said margins were expected to be lower than the prior year.
But it added: “Currency continues to provide a tailwind, and based on current exchange rates is now expected to deliver a 10% benefit to both full year revenue and profit.
“Taking into account this assumed currency benefit, our performance to date, and anticipated shipments in the remaining two months of 2016, the board now expects reported revenue to be towards the top end of market expectation.”
Analysts have penciled in revenues of between £527.3m and £587m.
Rotork said its underlying performance in the third quarter had been broadly the same as in the first half, as it had benefited from currency movements as well as a contribution from acquisitions.
“We continue to invest in infrastructure, including IT, that will improve our operational performance. In addition, good progress continues to be made on our previously-announced cost reduction programme,” it said in the update.
Order intake for the third quarter was up 22.2% on the comparable period in 2015 while revenue was 28.9% higher.
The order book at October 30 was £214.0m – 15.3% ahead of the same point last year.
