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IMI plc Preliminary Results

26 Feb 2016

IMI plc
Preliminary results, year ended 31 December 2015

 

Reported1

Statutory

Continuing operations:

2015

2014

Change

Organic4

2015

2014

Change

Revenue

£1,557m

£1,686m

-8%

-5%

£1,567m

£1,692m

-7%

Operating profit

£239m

£298m

-20%

-15%

£186m

£270m

-31%

Operating margin

15.4%

17.7%

-230bps

-190bps

 

 

 

Profit before tax

£219m

£278m

-21%

 

£163m

£246m

-34%

Basic EPS2

62.2p

78.0p

-20%

 

47.2p

243.4p

-81%

Cash generation3

£192m

£154m

+25%

       

Dividend per share

38.4p

37.6p

+2%

 

 

 

 

Net debt

£237m

£200m

 

 

 

 

 

1 Excluding the effect of items reported as exceptional in the income statement.
2 Statutory amounts for Basic EPS include both continuing and discontinued operations.
3 Cash generated from the operations after interest and tax, as described in note 11 to the financial statements.
4 Change shown after adjusting for exchange rates and excluding the impact of acquisitions and disposals.

Key Points

  • Organic revenue decline of 5%
  • Currency impact reduced revenue by £72m and operating profit by £13m
  • Strong cash generation up 25% at £192m
  • Recommending a 2% increase in full year dividend
  • Strategic growth initiatives delivering early benefits

Lord Smith of Kelvin, Chairman, commented:

“We have continued to deliver our strategic plan against a difficult economic backdrop. All of the work that has been and continues to be done will ensure we harness IMI’s full potential and deliver medium term growth and long-term shareholder value.

“While the Group’s organic growth strategy provides good prospects for profitable expansion, our strong cash generation and balance sheet give us the full range of options to create growth through business development and acquisitions.”

Mark Selway, Chief Executive, added:

“We made steady progress on a number of fronts despite tough trading conditions in many of our markets. Our financial results were broadly in line with market expectations and we made substantial progress across a range of our strategic initiatives which have improved our operational performance and enhanced our market competitiveness.

“Based on current market conditions, and on an organic constant currency basis, we expect first half revenues to reflect a similar percentage reduction to that experienced in the full year of 2015. Due to reduced sales volumes we expect first half margins to be around 250 basis points lower than the first half of 2015. In the second half of 2016 the benefits of restructuring activities, combined with normal business phasing, are expected to result in improved revenues and margins when compared to the first half of the year.”

Enquiries to:

John Dean IMI Tel: +44 (0)121 717 3712
Suzanne Bartch / Gayden Metcalfe Teneo Strategy Tel: +44 (0)20 7240 2486

A live webcast of the analyst meeting taking place today at 8:15am (GMT) will be available on the investor page of the Group’s website: www.imiplc.com. The Group plans to release its next Interim Management Statement on 5 May 2016.

To read the full press release in Acrobat PDF format please click here.