Interim results, six months ended 30 June 2014
|
|
Adjusted1 |
|
Statutory |
|||
|
Continuing operations: |
2014 H1 |
2013 H1 |
Change |
2014 H1 |
2013 H1 |
Change |
|
Revenue2 |
£809m |
£831m |
-3% |
£808m |
£832m |
-3% |
|
Operating profit2 |
£137m |
£146m |
-6% |
£113m |
£129m |
-12% |
|
Operating margin2 |
17.0% |
17.6% |
-60bps |
|
|
|
|
Profit before tax |
£127m |
£134m |
-5% |
£106m |
£117m |
-9% |
|
Total profit3 |
£99m |
£103m |
-4% |
£562m |
£113m |
+397% |
|
Basic EPS3 |
34.9p |
31.8p |
+10% |
200.6p |
34.9p |
+475% |
|
Dividend per share |
13.6p |
12.8p |
+6% |
|
|
|
|
Operating cash flow |
£98m |
£124m |
-21% |
|
|
|
|
Net debt |
£232m |
£212m |
|
|
|
|
1 Excluding the effect of items reported as exceptional in the Income Statement.
2 Adjusted amounts as per segmental information – note 2 to the financial statements.
3 Statutory amounts for Total profit and Basic EPS include both continuing and discontinued operations.
Highlights:
- Organic revenue growth of 3%
- Strong sterling adversely impacted revenue by £45m and operating profit by £7m
- Exceptional profits of £478m on disposals and £620m return of cash completed
- Interim dividend increased by 6%
- Business review completed and new accelerated growth strategy in place
- Significant opportunities to improve operations and accelerate growth
- Ambition to double operating profits by 2019
Roberto Quarta, Chairman, commented:
“We have undertaken a very detailed review of all aspects of the Group and, building on IMI’s significant strengths, we have a robust plan in place to drive growth and build long term shareholder value.”
Mark Selway, Chief Executive added:
“The first half result is broadly in line with expectations. On a constant currency basis we expect the Group to deliver an improved rate of organic revenue growth in the second half. While our aim is to progressively self-fund our organic growth initiatives, in the second half margins are expected to be slightly lower compared to the same period last year as we invest in a number of areas to ready our business for accelerated future growth.
“IMI has all the ingredients to become a world class business and the leader in its chosen sectors. Our strategic plan will ensure that this potential is harnessed and fully exploited to deliver sustainable accelerated top and bottom line growth. The opportunities are significant and that is reflected in our ambition to double the Group’s 2014 operating profits over the next five years, while retaining our financial discipline.”
Enquiries to:
| Will Shaw | IMI | Tel: +44 (0)121 717 3712 |
| Suzanne Bartch / Robert Morgan | StockWell Communications | 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 Interim Management Statement on 14 November 2014.
To view the full press release in Adobe Acrobat format please click here.