Rotork PLC (LON:ROR) reported a 50% jump in pre-tax profits for 2018 but its chief executive warned of “slower growth in 2019” amid macroeconomic uncertainty.
The FTSE 250 valves manufacturer reported a pre-tax profit for the year of £120.7mln, up from £80.6mln the year before, while revenues climbed to £695.7mln from £642.2mln.
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As a result of the improved performance, the final dividend was upped to 3.35p from 3.15p, taking the full year dividend to 5.9p from 5.4p.
In its outlook statement, Rotork CEO Kevin Hostetler said following “double digit [organic constant currency] growth" in 2018, and being “mindful” of macroeconomic uncertainty, the company was planning for slower 2019 growth.
“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”, Hostetler said, adding that margins would benefit from a restricting plan and were expected to “show progress on 2018”.
During the year, the company had seen its strongest revenue growth from the downstream oil & gas and industrial markets, compared to more modest growth in upstream and midstream oil & gas and a decline in sales in its power division.
In a note to clients, analysts at broker Peel Hunt said the results had come in “ahead of expectation” with the outlook for 2019 “naturally” cautious.