Financial highlights
2024 Half Year Results
Kiet Huynh, Chief Executive, commenting on the 2024 half year results, said:
“I am pleased with our strong first half performance which saw sales up double digits year-on-year at OCC and adjusted operating margins up to 21.2%. Orders grew marginally year-on-year on an OCC basis, against a strong comparison which benefitted from higher levels of large project activity.
The benefits of the Target Segment approach under Growth+ are increasingly apparent. Target Segment sales, which represent around half of group revenue, are growing strongly, particularly in water infrastructure, desalination, chemicals and up- and mid-stream oil & gas electrification. Rotork Site Services is also growing strongly.
The outlook for our end markets remains positive, order intake was encouraging in June and July and our order book gives us good visibility. Our full year expectations are unchanged and we continue to anticipate 2024 to be another year of progress on an OCC basis.”
| H1 2024 | H1 2023 | % change | OCC3 % change | |
| Order intake1 | £374.4m | £386.9m | -3.2% | +0.2% |
| Revenue | £361.4m | £334.7m | +8.0% | +11.6% |
| Adjusted2 operating profit | £76.5m | £65.3m | +17.1% | +22.3% |
| Adjusted2 operating margin | 21.2% | 19.5% | +170bps | +190bps |
| Profit before tax | £69.7m | £60.2m | +15.6% | |
| Basic earnings per share | 6.0p | 5.3p | +13.7% | |
| Adjusted2 basic earnings per share | 6.9p | 5.8p | +18.0% | +26.1% |
| Interim dividend | 2.75p | 2.55p | +7.8% |
Summary:
- The Growth+ strategy is delivering with first half revenue 8.0% higher year-on-year4 on a reported basis and 11.6% ahead OCC3, with Oil & Gas and Water & Power sales well ahead and Chemical, Process & Industrial lower as a result of reduced mining sector project activity
- Orders received were 4% above sales and marginally ahead year-on-year OCC despite the prior period including an unusually high number of large orders. Oil & Gas and Water & Power orders were slightly higher whilst Chemical, Process & Industrial orders were slightly lower
- Our Target Segments approach – a key pillar of Growth+ - is delivering. Strong year-on-year revenue growth was reported in our upstream and midstream electrification sector (8% of first half group sales) as well as in water infrastructure and wastewater treatment
- Adjusted operating margins were 170bps higher at 21.2%, reflecting the increased sales and good drop-through. The reported operating margin was 18.5%
- ROCE5 was 36.9% (H1 2023: 32.7%). We retain a strong balance sheet with closing net cash of £119.3m (December 2023: £134.4m) reflecting 106% cash conversion and £18.1m of share repurchases under the £50m share buyback programme
Note:
- Order intake represents the value of orders received during the period.
- Adjusted5 figures exclude the amortisation of acquired intangible assets and other adjustments (see note 4).
- OCC5 is organic constant currency results which exclude acquired businesses and are restated at 2023 exchange rates.
- Year-on-year refers to the first half of 2024 compared to the first half of 2023.
Adjusted figures, organic constant currency (‘OCC’) figures, cash conversion and ROCE are alternative performance measures and are used consistently throughout these results. They are defined in full and reconciled to the statutory measures in note 2.