Rotork PLC (LON:ROR) today announced 2018 Full Year Results
· Strong OCC revenue growth, up 11.3%
· Adjusted operating margin improved to 21.0%
· ROCE increased 430bps to 29.2%
· Cash conversion of 110.7%
· Net cash of £43.6m at year end
· Growth Acceleration Programme proceeding at pace in H2:
– 160bps improvement in working capital to sales
– Revenue per head up 7.5%; adjusted operating profits per head up 11.3%
– Supply chain improvements yielding benefits
– Centralised new product development structure
Kevin Hostetler, Chief Executive, commenting on the results, said:
“This is a very exciting period for Rotork. We have mapped out and are now executing a comprehensive plan to return Rotork to the levels of growth and margin performance previously experienced by the Group, and to do this on a sustainable basis throughout the cycle.
“We have assembled a capable management team, comprising new and existing talent. We have a strong balance sheet, with opportunities to improve on an already strong track record of cash generation, providing scope to further accelerate progress.
“Following double-digit OCC revenue growth in 2018, and mindful of macroeconomic uncertainty, we are planning for slower growth in 2019. Based on our current assessment of project phasing, we expect to deliver modest sales growth on an OCC basis in 2019, with lower year on year sales in H1 reflecting the strong comparator period. Margins will benefit from the restructuring plans under our Growth Acceleration Programme and the implementation of additional cost saving initiatives. Overall, we expect full year margins to show progress on 2018.”