Interim Results, six months ended 30 June 2019
|
Adjusted1 |
Statutory |
||||||
| Continuing operations: |
2019 H15 |
2018 H1 |
Change |
Organic4 |
2019 H1 |
2018 H1 |
Change |
|
Revenue |
£910m |
£915m |
-1% |
-3% |
£910m |
£914m |
0% |
|
Operating profit |
£118m |
£120m |
-1% |
-4% |
£101m |
£101m |
0% |
|
Operating margin |
13.0% |
13.1% |
-10bps |
|
|
|
|
|
Profit before tax |
£110m |
£113m |
-3% |
|
£93m |
£93m |
0% |
|
Basic EPS2 |
32.1p |
32.9p |
-2% |
|
28.4p |
27.4p |
+4% |
|
Operating cash flow3 |
£101m |
£68m |
+49% |
|
|
|
|
|
Dividend per share |
14.9p |
14.6p |
+2% |
|
|
|
|
|
Net debt |
£516m |
£459m |
|
|
|
|
|
1 Excluding the effect of adjusting items as reported in the income statement.
2 Statutory amounts for Basic EPS include both continuing and discontinued operations.
3 Operating cash flow, as described in note 12 to the financial statements.
4 After adjusting for exchange rates and excluding the impact of acquisitions and disposals and lease accounting changes (see note 3).
5 Including IFRS 16 and notional rent accounting changes, see note 9 for further details.
Key Points
- First half results in-line with expectations
- Good cash delivery
- Precision Engineering continues to be impacted by Industrial Automation weakness
- Full year rationalisation charges to be c.£35m with c.£30m annualised savings
- Strong order growth and robust margins in Critical Engineering
- Good progress on Hydronic Engineering margin improvement
- Customer at centre of immediate improvement actions
- Strategic review well underway
Roy Twite, Chief Executive, commented:
“Our strategic review process is focused on developing a plan to increase value for all our stakeholders. We are looking at all aspects of our business and we will report on the outcome of the review with the 2019 preliminary results. In the meantime, we have immediately implemented a number of important profitable growth initiatives to optimise our performance.”
“The trading outlook for the Group remains substantially unchanged. In the second half of 2019 we continue to expect that organic revenue will experience a decline similar to that in the first half, when compared with the same period in 2018. Nonetheless, second half profits are expected to be similar to last year, supported by the business improvement initiatives pursued by each of the three divisions.”
“Based on current market conditions, we anticipate full year 2019 results will be in-line with expectations.”
Enquiries to:
|
John Dean |
IMI |
Tel: +44 (0)121 717 3712 |
|
Suzanne Bartch / Robert Morgan |
Teneo |
Tel: +44 (0)203 757 9242 |
A live webcast of the analyst meeting taking place today at 8:30am (BST) 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 7 November 2019.
To read the full press release in Acrobat PDF format please click here