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Hydronic Engineering

IMI Hydronic Engineering is the leading global provider and recognised expert in hydronic distribution systems and room temperature control, with experience in more than 100,000 construction projects world-wide.

IMI Hydronic Engineering

We help clients optimise their heating, ventilation and air conditioning (HVAC) systems by providing products and knowledge to deliver perfect indoor climate at minimum energy use and at the right energy cost.

Our team of just under 2,000 people operate around the world, and we have design and manufacturing facilities in six countries.

2015 Performance

Revenue
£264m (2013: £284m)

Operating profit
£51.8m (2013: £52m)


Performance

After adjusting for the impact of adverse exchange rate movements of £23m and disposals of £2m, revenues were 2% higher on an organic basis. Revenues on a reported basis of £264m (2014: £284m) were down 7%. The strong growth in the second half of the year was driven by sales of new products and the absence of adverse weather conditions experienced in the prior year.

Segmental operating profit at £52m (2014: £57m) was 9% lower on a reported basis and, after adjusting for £4m of exchange rate impact, 1% lower on an organic basis. Operating margins showed their normal second half seasonal improvement to 21.2% (2014: 21.4%), full year margins at 19.6% were slightly lower compared to last year (2014: 20.0%).

During the year we continued to invest in new product development and successfully launched 15 new products, which delivered annualised revenues of around £30m. A good pipeline of exciting launches is scheduled for 2016, which will underpin our growth ambitions for the division. Good progress was also made on other strategic initiatives, including a further implementation of the lean principles in our factories and of the new ERP system in the division.

The full implementation of lean, including Kanban and Pull Systems, resulted in base load inventory reductions of 18% while on-time delivery rose to 92%. These improvements were delivered despite the impact of 15 great new products which required their own additions to inventory and operational complexity in the year.


Key Achievements

  • Delivered 2% organic sales growth
  • Launched 15 new products including Eclipse, a revolutionary thermostatic radiator valve based on our patented AFC technology
  • Good progress on lean implementation resulting in an improved lean assessment score of 72%, an 18% reduction in inventory levels and over 92% on time deliveries
  • Hydronic Engineering’s Polish site first in IMI to achieve worldclass lean ranking with score of 88%

Market Review

Governments and international bodies continue to launch initiatives to significantly increase energy efficiency, such as the European Union’s plan for nearly-zero energy buildings by 2020; the agreement by the US and China to reduce greenhouse gas emissions and increase energy efficiency over the next 20 years; and the United Nations’ plan to double the rate of improvement in energy efficiency by 2030.

The trend towards a more sustainable and energy efficient world will be a key driver for IMI Hydronic Engineering. While building construction in our core European markets has remained weak in 2015, the global ambition to improve energy efficiency will continue to drive demand for the division’s new and world leading products.


Outlook

In 2016 European construction markets are forecast to remain broadly flat, however, the success of our new product launches is expected to result in good revenue growth in 2016. Operating margins are expected to show their normal second half improvement and reflect the on-going investment for longer term growth.

Main markets

Balancing and Control Hydronic balancing is about controlling water flow, which ensures that a water-based heating or cooling system performs to its full potential. Today unbalanced systems are the cause of two thirds of all indoor climate problems. As the balancing experts IMI Hydronic Engineering enable customers to maintain comfort at the right level and increase HVAC efficiency by up to 30%. Our expertise covers all types of hydronic systems – constant flow and variable flow, static balancing and dynamic balancing.

Thermostatic Control With an unparalleled history of success owing to our dedication to precision and control, IMI Hydronic Engineering’s thermostatic control systems guarantee reliability in room temperature control. All our thermostatic control bodies and housings are made from gunmetal. Resistant to corrosion and dezincification, this tough material is shaped using our own casting process. The result is unmatched temperature control and thermostatic valve quality.

Pressurisation Changes in temperature result in changing water volume, which have to be dealt with immediately to avoid damage and system breakdown. Our reliable pressure control systems with compressors or pumps, together with our robust range of static expansion vessels and water-make up devices, make sure there is the right amount of water, at the right pressure in the system at all times. 

Water quality Our wide range of separators and degassers protect the installation and maintain system performance by keeping water free of micro-bubbles and sludge in heating, solar and chilled water systems. Our latest cyclonic technology has been proven to be up to 9 times more efficient at removing dirt from HVAC systems ensuring a longer life of the installation, lower maintenance costs as well as lower energy costs.

Our product brands

IMI PNEUMATEX

Reliable pressurisation is a basic requirement for a trouble-free operation of heating, cooling and solar systems. Our robust range of pressure maintenance systems with compressors or pumps and expansion vessels maintains the right pressure in the system at all times.

Water is the most important component in any hydronic system. When compromised, the effects can be felt throughout the system. Our dirt and air separators and pressure-step degassers protect the installation by keeping water free of micro-bubbles and sludge.

IMI TA

World leader in hydronic control and balancing solutions in heating and cooling systems. Our products and services take control over whole system to achieve desired comfort with minimal energy consumption. The wide innovative range of control valves, actuators, balancing valves and differential pressure controllers enable you to achieve high energy efficiency, quiet operation and high longevity with fast payback of investment.

IMI FLOW DESIGN

Leading manufacturer of automatic flow control devices for the hydronic flow balancing industry, based on the unique and patented Autoflow cartridge. Offering precise flow control solutions for terminal units, fan coils, air handlers, system pumps, chillers, boiler and cooling towers in HVAC systems. We also offer manual balancing valve products, hook-up components, pressure controller products, and hose accessories.

IMI HEIMEIER

Market leader in thermostatic control. Our thermostatic valve bodies and thermostatic heads, along with an extensive assortment of actuators, room thermostats and control valves, allow direct or automatic control of radiators and underfloor heating systems to perfectly control individual room temperatures according to different user needs.