Preliminary results, year ended 31 December 2018
|
|
Adjusted1 |
Statutory |
|||||
|
Continuing operations: |
2018 |
2017 |
Change |
Organic4 |
2018 |
2017 |
Change |
|
Revenue |
£1,907m |
£1,751m |
+9% |
+5% |
£1,907m |
£1,751m |
+9% |
|
Segmental operating profit |
£266m |
£241m |
+11% |
+9% |
£232m |
£193m |
+20% |
|
Operating margin |
14.0% |
13.8% |
+20bps |
|
|
|
|
|
Profit before tax |
£251m |
£224m |
+12% |
|
£213m |
£181m |
+18% |
|
Basic EPS2 |
73.2p |
65.3p |
+12% |
|
62.5p |
59.8p |
+5% |
|
Operating cash flow3 |
£222m |
£218m |
+2% |
|
|
|
|
|
Dividend per share |
40.6p |
39.4p |
+3% |
|
40.6p |
39.4p |
+3% |
|
Net debt |
£405m |
£265m |
|
|
£405m |
£265m |
|
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 9 to the financial statements.
4 Change shown after adjusting for exchange rates and excluding the impact of acquisitions and disposals (see note 1).
Key points
- Results ahead of market expectations
- Good growth across all Precision Engineering verticals
- Critical Engineering sales growth despite continued New Construction Power weakness
- Hydronic Engineering margin recovery delivered
- Bimba integration progressing well
- Adjusted Basic EPS increased 12%
- Further reduction of global pension liabilities
- 3% increase in the full year dividend recommended
- Roy Twite to succeed Mark Selway as Chief Executive
Lord Smith of Kelvin, Chairman, commented:
“2018 was another year of important progress. We delivered results ahead of market expectations and continued to execute our strategy effectively. In the year we reported increases in revenues, margins and earnings per share and enhanced our competitive capabilities.
“We have a strong balance sheet and inherently cash generative operations which continue to provide the headroom to invest in organic development and appropriate acquisition opportunities as they arise.”
Mark Selway, Chief Executive, added:
“It is pleasing to report the continuation of the progress achieved in the first half of 2018. Our strategic plan to drive sustainable long-term growth continues to make a real difference across all parts of the Group. Our new product pipeline is developing well, our manufacturing operations have further improved and the new systems and processes being embedded throughout the business are delivering gains in efficiency and competitiveness.
“In the first half of 2019 we expect organic revenues to be lower than the same period in 2018 due to the phasing of Critical Engineering’s order book and slowing market demand in the Industrial Automation sector in Precision Engineering. Margins are expected to be broadly similar, supported by our operational initiatives and an improved performance from Hydronic Engineering. Results for the full year will also reflect the benefits of restructuring and our normal second-half bias.”
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 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 9 May 2019.
To read the full press release in Acrobat PDF format please click here