Rotork PLC (LSE:ROR) shares jumped over 7% in early trading on Tuesday, after the industrial engineer reported stronger profits than expected and announced a £50 million share buyback.
Revenues for 2024 came in at £754.4 million, up 8.2% on an organic basis, with reported revenue 4.9% ahead after accounting for the significant foreign exchange headwind.
Adjusted operating margins widened 70bps to 23.6% and operating profits rose 12.8% to £178.4 million. Reported profit before tax fell 7% to £140.5 million.
CEO Kiet Huynh said: "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".
Huynh said the company was three years into its 'Growth+' programme and remains "confident of delivering our financial ambition of mid to high single digit sales growth and mid-20s adjusted operating margins over time".
Analysts at Peel Hunt said: "Rotork has produced one of the strongest sets of numbers in the current Industrials reporting season".
The 8.2% organic revenue growth number compared to its 7% assumption, and is also reflected in the order book, which is up 6.1% after having been flat at the half year.