(Alliance News) - Rotork PLC on Wednesday said that successful management action had delivered strong revenue recovery for the company, as it reinforced full-year guidance while also hinting at an improved order book in the new year.

Rotork is a Bath, England-based flow control solutions provider for oil and gas, water and wastewater, power, chemical process and industrial applications.

For the four months to October 30, the company said revenue grew 19% year-on-year on an organic constant currency basis. It attributed this increase to higher selling prices, as well as the supply chain improvement measures implemented over the last 18 months.

Listed amongst these optimisations was the direct purchasing and forward buying of semiconductors, re-certification and re-engineering of products, and securing of contracted logistics routes and tactical inventory build.

Rotork said that activity was driven by customers' operational, rather than capital, expenditure. Order intake in October was "encouraging", and "solidly ahead" from a year prior.

Growth opportunities also developed over the period. For example, Rotork noted growing momentum behind electrification in its North American target segment.

It also committed to an employee benefits review, which included bringing forward salary increases for all but its most senior executives.

Meanwhile, the firm's net cash at October 30 stood at GBP79.4 million, 12% lower than GBP90.4 million in June.

Looking ahead, Rotork expects annual adjusted operating profit to be in line with expectations. It anticipates entering 2023 with a record order book, "significantly higher" than where it started at the beginning of this year.

Rotork shares were trading 2.6% higher at 293.00 pence each in London on Wednesday morning.

By Holly Beveridge; hollybeveridge@alliancenews.com

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