The focus of our strategy for Special Engineering has been based upon the development of the Controls businesses whilst divesting non-core activities in a way that enhances shareholder value. We have now largely completed the divestment programme in Special Engineering and have re-named this business area Energy Controls. Proceeds generated by these sales of mainly UK businesses were Ł54 million in cash. As well as adding to the financial resources of the group, these disposals enable management to concentrate on the development of the group’s core businesses.

The acquisition of the industrial valve division of Sulzer Thermtec in 1997 has enhanced Control Components’ position as a leading world supplier of tough and severe service valves. We continued the integration of the Californian and Swiss operations during the year in accordance with our plan. The business performed strongly in 1998 with sales and operating profit ahead of last year. However, order intake from power construction projects slowed in the second half, mainly due to the economic problems in the Far East. This will be reflected in lower sales in the first half of 1999. As a consequence of this and our integration process, we made a 20 per cent reduction in the total worldwide workforce during the year.

Mecafrance stainless steel ball valves.

IMI Amal's new Firebloc combined flame arrester and pressure/vacuum valve which protects safe storage of flammable liquids in the petrochemical industry.

IMI Nuclear enjoyed a substantial increase in demand for specialist nuclear components, lifting profits ahead of last year and providing much encouragement for the future. Sales in IMI Safety Systems were increased through successful efforts to grow internationally, which more than counterbalanced the weakness in UK demand.

Mecafrance had a satisfactory year, maintaining sales and profit in line with the previous year. The principal markets for its specialist ball valves continue to be France and Germany with increasing business from China and the USA.
Profitability at IMI Cash Valve was significantly higher than the previous year as the benefits of our investment in the new lower cost Alabama facility showed through.

CCI's reheater safety and relief valves are
specified worldwide for use in power stations

Sarah Chappell, IMI Nuclear Components, inspecting an isolation valve used in the nuclear power industry.

IMI Marston had another good year with a strong performance from its aerospace operations. Some excellent operational initiatives in our sporting ammunition businesses helped offset the impact of the continued strength of sterling on export sales.

Despite the lower volumes which are expected in some of our businesses over the next year, the market offers good prospects for long term growth and we are well placed to generate strong returns.

IMI Safety Systems offer complementary ranges of safety products for the petrochemical industry including safety relief valves, flame arresters and bursting dics.