Rotork profits fall as parts shortages hit revenue

Engineering group Rotork reported a fall in annual profits as computer chip shortages hit revenues and warned supply chain constraints would not improve during the first half of 2022.

The company on Tuesday said pre-tax profit for the year to December 31 fell 5.9% to £105.9m on a similar decline in revenue to £569.2m. The full year dividend was lifted to 6.4p a share from 6.3p.

Orders rose 4.1% to £614m year-on-year driven by strong performances from Rotork’s water & power and chemical, process & industrial divisions. Oil & gas orders returned to growth in the second half.

“The outlook for our end markets is improving and we entered the year with a record opening order book. However, we do not anticipate current supply chain disruptions to improve in the first half of 2022,” Rotork said.

“We remain committed to the financial objectives of mid to high single digit revenue growth and mid-20s adjusted operating margins over time and, notwithstanding geopolitical uncertainties, we expect a year of solid progress in 2022."