Interim results, six months ended 30 June 2017
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Reported1 |
Statutory |
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Continuing operations: |
2017 H1 |
2016 H1 |
Change |
Organic3 |
2017 H1 |
2016 H1 |
Change |
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Revenue |
£846m |
£759m |
+11% |
0% |
£848m |
£763m |
+11% |
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Operating profit |
£106m |
£96m |
+11% |
-3% |
£94m |
£80m |
+18% |
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Operating margin |
12.5% |
12.6% |
-10bps |
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Profit before tax |
£98m |
£86m |
+13% |
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£89m |
£70m |
+26% |
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Basic EPS1 |
28.4p |
24.4p |
+16% |
|
27.2p |
19.4p |
+40% |
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Operating cash flow2 |
£86m |
£85m |
+1% |
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Dividend per share |
14.2p |
14.0p |
+1.4% |
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Net debt |
£318m |
£334m |
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1 Excluding the effect of items reported as exceptional in the income statement.
2 Operating cash flow, as described in note 9 to the financial statements.
3 Change shown after adjusting for exchange rates and excluding the impact of acquisitions and disposals.
Key Points
- Results slightly ahead of expectations
- Further good progress against 5-year strategic plan
- Re-organisation plans proceeding to time and budget
- Good cash flow with continued focus on working capital
- Favourable currency impact on revenues and profits expected in the full year
- Proposed 1.4% increase in interim dividend
Mark Selway, Chief Executive, commented:
“The improved trading environment experienced in some of our most important markets in the first quarter has continued for the first half of the year. Most encouragingly, progress with our ongoing operational improvements and strategic self-help initiatives has maintained an impressive pace and our market positions continue to improve. Our focus remains resolute on building both competitive advantage and shareholder value by delivering great products and continuously improving our customer offering.”
“While we continue to face some specific market headwinds in the remainder of 2017, particularly in Critical Engineering, full year results will reflect our normal second half bias and the benefits from ongoing reorganisation activities. In the remainder of the year, organic revenue is still expected to be below last year, principally driven by order phasing in Critical Engineering. However, second half margins will show a modest improvement compared with the same period in 2016, supported by both rationalisation savings and improved market conditions in Precision Engineering.”
“Based on current market conditions, we expect full year 2017 results will be modestly above current market expectations.”
Enquiries to:
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John Dean |
IMI |
Tel: +44 (0)121 717 3712 |
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Suzanne Bartch / Gayden Metcalfe |
Teneo Blue Rubicon |
Tel: +44 (0)203 757 9239 |
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 9 November 2017.
To read the full press release in Acrobat PDF format please click here.