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IMI plc Preliminary Results

24 Feb 2017

IMI plc
Preliminary results, year ended 31 December 2016

 

Reported1

Statutory

Continuing operations:

2016

2015

Change

Organic4

2016

2015

Change

Revenue

£1,649m

£1,557m

+6%

-5%

£1,657m

£1,567m

+6%

Operating profit

£228m

£239m

-5%

-17%

£188m

£186m

+1%

Operating margin

13.8%

15.4%

-160bps

-200bps

 

 

 

Profit before tax

£208m

£219m

-5%

 

£165m

£163m

+1%

Basic EPS2

59.8p

62.2p

-4%

 

48.3p

47.2p

+2%

Operating cash flow3

£246m

£232m

+6%

       

Dividend per share

38.7p

38.4p

+1%

 

 

 

 

Net debt

£283m

£237m

 

 

 

 

 

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.
3Operating cash flow, as described in note 9 to the financial statements.
4Change shown after adjusting for exchange rates and excluding the impact of acquisitions and disposals.

Key Points

  • Significant progress on strategic initiatives
  • Results in-line with market expectations
  • Strong operating cash flow of £246m
  • Recommending a 1% increase in the full year dividend
  • De-risking of global pension liabilities with UK remaining in surplus

Lord Smith of Kelvin, Chairman, commented:

“Despite difficult market conditions our results for 2016 were in-line with expectations and the Group continued to deliver against our ambitious strategic objectives.”

“The combination of necessary management actions to address the current market difficulties and the continued progress in the execution of our strategy underpin our plans to enhance customer relationships, grow our market shares and further improve working capital. The Group's balance sheet is strong and our operations are inherently cash generative which provides the headroom to invest in organic development and appropriate acquisition opportunities as they arise.”

Mark Selway, Chief Executive, added:

“2016 was another year of important progress for IMI. As well as continuing to improve both our operational performance and our customer offering, we have acted decisively to ensure our cost-base continues to support our growth ambitions while also protecting near-term performance.”

“Based on current market conditions, we expect organic revenues in the first half of 2017 to reflect a similar percentage reduction to the first half of 2016, with margins slightly lower than the first half of last year. Results for the full year are expected to include a second half bias reflecting the timing of restructuring benefits and normal trading seasonality.”

Enquiries to:

John Dean IMI Tel: +44 (0)121 717 3712
Suzanne Bartch / Gayden Metcalfe Teneo Blue Rubicon Tel: +44 (0)203 757 9239

A live webcast of the analyst meeting taking place today at 08:30am (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 4 May 2017.

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