Rotork (LSE:ROR), the flow control equipment maker set to be acquired by ABB, in its interim results, highlighted a robust financial performance.
The recommended cash takeover, priced at 506p per share, is expected to complete in the first half of 2027, subject to shareholder and court approval.
The offer, comprising 503p in cash plus the newly declared 3.00p interim dividend, arrives alongside interim results showing revenue held stable at £367.2 million for the six months to the period end, up 1.3% on an organic constant currency (OCC) basis.
Tuseday's results statement showed adjusted operating profit rose 1.7% to £82.2 million, with margin expanding 60 basis points on an OCC basis to 22.4%, driven by operating leverage and favourable mix.
Chemical, Process & Industrial revenue jumped 16.0% on an OCC basis, powered by data centre demand and marine electrification, while Oil & Gas revenue fell 8.4% on an OCC basis as Middle East disruption and customer capex discipline weighed on upstream and midstream activity.
Water & Power grew 3.4% on an OCC basis, with order momentum expected to underpin stronger second-half performance.
Order intake fell 4.0% on an OCC basis to £371.8 million, with a book-to-bill ratio of 1.01x.
Net cash stood at £25.3 million, with return on capital employed at 36.5%.
"Rotork delivered a robust first half performance, demonstrating the strength of our portfolio and the continued benefits of the Growth+ strategy," said chief executive Kiet Huynh.
The company said it now expects a more gradual Oil & Gas recovery, with full-year divisional revenue slightly lower year-on-year, while anticipating stronger CPI growth; it continues to expect further OCC progress for the group in 2026.
