IMI plc Interim Financial Report
IMI plc, the global engineering group, today announces its interim results for the six months ended 30 June 2011.
| Six months ended 30 June |
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| Continuing operations: | 2011 | 2010 | change | ||
| Revenue | £1,032m | £925m | +12% | ||
| Segmental operating profit1 | £176.4m | £145.6m | +21% | ||
| Segmental operating margin | 17.0% | 15.7% | |||
| Adjusted profit before tax2 | £171.3m | £136.4m | +26% | ||
| As reported: | |||||
| Operating profit | £148.3m | £136.6m | +9% | ||
| Profit before tax | £144.3m | £133.5m | +8% | ||
| Adjusted basic earnings per share3 | 37.9p | 29.8p | +27% | ||
| Basic earnings per share | 31.9p | 29.4p | +9% | ||
| Interim dividend | 11.0p | 9.0p | +22% | ||
| Net borrowings | £168m | £157m | |||
Norman Askew, Chairman of IMI commented:
“The Group has delivered a strong set of first half results with good organic growth of 8% and further margin improvement. We are pleased to increase the interim dividend by 22%.
Macroeconomic indicators have weakened over recent weeks. Whilst noting some slowdown in industrial demand in Southern Europe and the UK, we have, more generally, not yet seen any material change in underlying order trends since the end of June, with most customers remaining positive about their future investment plans. The Company retains a full array of operational measures to quickly reduce cost and underpin operating margins in the event that demand does weaken appreciably. However, based on current order trends, we still expect to make further good progress in the second half of this year.
Longer term IMI is well placed to deliver sustainable growth through an acceleration of its new product activity and to deliver further margin improvement through optimised pricing and extensive supply chain cost reduction initiatives.”
- (1) before exceptional items (restructuring, acquired intangible amortisation and the reversal of net economic hedge contract gains) totalling £28.1m (2010: £9.0m)
- (2) before exceptional items (restructuring, acquired intangible amortisation and financial instruments) totalling £27.0m (2010: £2.9m) and including economic hedge contract gains and losses totalling £0.8m (2010: £2.1m)
- (3)before the after tax net cost of exceptional items totalling £19.0m (2010: £1.5m)
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