Financial highlights
2024 Full Year Results
Kiet Huynh, Chief Executive, commenting on the 2024 full year results, said:
“We delivered another year of strong progress in 2024 with good OCC sales growth, healthy margin improvement and an excellent cash flow performance.
“The delivery of Growth+ continues and the benefits of the strategy are evident in our improved financial performance. Since the programme launch in 2022, Rotork revenue has grown at a 10.0% CAGR on an OCC basis and adjusted operating margins have increased 110bps to 23.6% after Growth+ investments. The benefits are not only financial. We are also making strong progress under the Customer Value pillar, putting the customer at the forefront of everything we do. Under our Innovative Products & Services pillar we launched important new products and recently agreed to acquire a leading South Korean electric actuator manufacturer, which will broaden and strengthen our product offering.
“Rotork is highly cash generative and benefits from having a strong balance sheet providing the financial flexibility to pursue strategic bolt-on acquisitions whilst also returning cash to shareholders, including another £50m share buyback announced today.
“Three years into the Growth+ programme we remain confident of delivering our financial ambition of mid to high single digit sales growth and mid-20s adjusted operating margins over time. We have entered 2025 with confidence and expect a year of progress on an OCC basis.”
| 2024 | 2023 | % change | OCC3 % change | |
| Order intake1 | £744.3m | £723.7m | +2.8% | +6.1% |
| Revenue | £754.4m | £719.1m | +4.9% | +8.2% |
| Adjusted2 operating profit | £178.4m | £164.5m | +8.5% | +12.8% |
| Adjusted2 operating margin | 23.6% | 22.9% | +70bps | +100bps |
| Profit before tax | £140.5m | £150.6m | -6.8% | |
| Basic earnings per share | 12.1p | 13.2p | -8.1% | |
| Adjusted2 basic earnings per share | 15.9p | 14.6p | +8.7% | |
| Full year dividend | 7.75p | 7.2p | +7.6% |
Summary:
- Another year of good progress with revenue 8.2% higher year-on-year on an OCC basis. Reported revenue was 4.9% ahead despite a significant foreign exchange headwind
- Adjusted operating margin was 70bps higher year-on-year at 23.6% (2023: 22.9%)
- Acquisition of Noah, a leading South Korean electric actuator manufacturer, for an enterprise value of £44m agreed post period end (expected to close in the coming days), broadening our electric actuator offering
- Another £50m share buyback announced
- At a divisional level, Oil & Gas and Water & Power revenues grew low double digits year-on-year (OCC). Chemical, Process & Industrial (CPI) returned to sales growth in the second half
- Rotork Service, our global service network and a key differentiator in our industry, performed strongly growing ahead of Group revenues
- Group order intake increased 6.1% year-on-year (OCC) with all divisions ahead
- Continued momentum across all Growth+ pillars with Target Segments sales growth 9% on an OCC basis. Target Segments represented around half of Group sales
- Strategic highlights included the successful opening of our new China manufacturing facility, the launch of new products and digital services and the rebranding of Rotork Service
- The UK defined benefit pension scheme was de-risked via a bulk annuity purchase, causing a one-time non-cash charge that reduced the operating margin by 270bps to 18.0% year-on-year
- Closing net cash was £125.3m and broadly unchanged over the period after the return of £113m to shareholders via dividends and share buyback. Cash conversion was strong at 119%, driven by improved net working capital to sales. ROCE4 was 37.3% (up 340bps)
Note:
1 Order intake represents the value of orders received during the period.
2 Adjusted4 figures exclude the amortisation of acquired intangible assets and other adjusting items (see note 4).
3 OCC4 is organic constant currency results. During the year the calculation of OCC performance was changed from translating reporting period results at the prior period average exchange rates to translating the prior period results at the reporting period's average exchange rates. This change enables greater comparability of results with previous periods. Adjustments for acquisitions and/or disposals are unchanged - acquired businesses are not included until owned for more than one year and are then included on an equal perimeter basis, disposed businesses are excluded entirely. Applying the previous calculation methodology to the 2024 results does not result in a material difference in the OCC performance for the year.
4 Adjusted figures, organic constant currency (‘OCC’) figures, cash conversion and ROCE are alternative performance measures and are used consistently throughout these results. They are defined in full and reconciled to the statutory measures in note 2.