Rotork (LSE:ROR) PLC’s chief executive Kevin Hostetler has informed the company that he plans to return to the US with his family next year, and as a result, will step down as CEO in a process that is expected to conclude by June 30 2022.
The valve maker said the board has commenced a search for a new CEO and will consider external and internal candidates with a further update to be provided in due course.
"Since joining Rotork in early 2018, Kevin has demonstrated impressive leadership in developing and successfully implementing our Growth Acceleration Programme. On leaving, he will have overseen the vast majority of this 5-year programme, which has fundamentally reshaped our core platform and processes, strengthened our management team, and positioned Rotork for a bright future. On behalf of the Board, I would like to thank Kevin for his substantial contribution to date and his ongoing commitment to leading Rotork through to the middle of next year," Rotork chairman Martin Lamb said in a statement.
Guidance and dividend reinstated
News of Hostetler’s impending exit was accompanied by a separate announcement containing Rotork’s results for the first half of 2021.
For the six months to June 30, the company reported a pre-tax profit of £54.1mln, up 8.4% year-on-year, while revenues rose 1.8% to £288.3mln.
The firm highlighted that orders were also higher during the period, driven by what it said was “encouraging performances” in its Water & Power and Chemical, Process & Industrial divisions offsetting lower revenues in its Oil & Gas business.
As a result, the company said it has resumed its full-year guidance, predicting “a year of progress on a constant currency basis”, as well as reinstating interim dividends with a payment of 2.35p per share.
"I'm pleased to report that Rotork returned to underlying growth in the first half. Our strategy of focusing our sales teams on specific end markets and investing in targeted geographies and in aftermarket activities is delivering results. Margin improvement continued, despite significantly higher logistics and commodity costs, through our focus on managing inflation and the continued successful execution of our Growth Acceleration Programme,” Hostetler said in a statement.
“Our first half performance demonstrates good momentum, and whilst mindful of the risks of additional Covid-19 disruption and of continuing component shortages, we anticipate 2021 to be a year of progress on a constant currency basis," the CEO added.
News of Hostetler’s impending departure sent the shares down 6.1% to 340.6p in early deals on Tuesday.