ROR reported 1H18 results, wherein EPS grew 10.3% y/y (OCC 15.3%). Its order book increased 9.1% y/y organically to £364.7m (+13.3% OCC). Revenue rose 10.4% y/y to £331.0m (+14.8 OCC), while underlying operating profit grew 20.2% y/y to £65.4m (+25.1% OCC).
Order book as at end-1H18 was £226.2m, 17.5% higher than at end-FY17; the company cited a probable increase in spending by customers on maintenance and upgrades given the lack of investments over the past few years. Oil and gas was the highest contributor to revenue at 53.3% (1H17: 48.5%). Balance sheet remained strong with net debt/EBITDA of 0.04:1 (net debt at £5.7m). Dividend was at 2.2p per share (+7.3% y/y). Management also reiterated its outlook for the full year.
Kevin Hostetler, CEO, commented: “Management expectations for OCC growth are unchanged. We expect revenues for the full year to show high single digit growth over last year on a reported basis, with currency headwinds reduced to circa 3% at current exchange rates. We continue to expect adjusted operating margins to be slightly ahead of the prior year.”