IMI plc
Preliminary results, year ended 31 December 2016
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|
Reported1 |
Statutory |
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Continuing operations: |
2016 |
2015 |
Change |
Organic4 |
2016 |
2015 |
Change |
|
Revenue |
£1,649m |
£1,557m |
+6% |
-5% |
£1,657m |
£1,567m |
+6% |
|
Operating profit |
£228m |
£239m |
-5% |
-17% |
£188m |
£186m |
+1% |
|
Operating margin |
13.8% |
15.4% |
-160bps |
-200bps |
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|
|
|
Profit before tax |
£208m |
£219m |
-5% |
£165m |
£163m |
+1% |
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|
Basic EPS2 |
59.8p |
62.2p |
-4% |
48.3p |
47.2p |
+2% |
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|
Operating cash flow3 |
£246m |
£232m |
+6% |
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Dividend per share |
38.7p |
38.4p |
+1% |
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|
|
|
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Net debt |
£283m |
£237m |
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1 Excluding the effect of items reported as exceptional in the income statement.
2 Statutory amounts for Basic EPS include both continuing and discontinued operations.
3Operating cash flow, as described in note 9 to the financial statements.
4Change shown after adjusting for exchange rates and excluding the impact of acquisitions and disposals.
Key Points
- Significantprogress on strategic initiatives
- Resultsin-line with market expectations
- Strongoperating cash flow of £246m
- Recommendinga 1% increase in the full year dividend
- De-risking ofglobal pension liabilities with UK remaining in surplus
Lord Smith of Kelvin, Chairman, commented:
“Despite difficult market conditions our results for2016 were in-line with expectations and the Group continued to deliver againstour ambitious strategic objectives.”
“The combination of necessary management actions toaddress the current market difficulties and the continued progress in theexecution of our strategy underpin our plans to enhance customer relationships,grow our market shares and further improve working capital. The Group's balancesheet is strong and our operations are inherently cash generative whichprovides the headroom to invest in organic development and appropriateacquisition opportunities as they arise.”
Mark Selway, Chief Executive, added:
“2016 was another year of important progress for IMI. Aswell as continuing to improve both our operational performance and our customeroffering, we have acted decisively to ensure our cost-base continues to supportour growth ambitions while also protecting near-term performance.”
“Based on current market conditions, we expect organicrevenues in the first half of 2017 to reflect a similar percentage reduction tothe first half of 2016, with margins slightly lower than the first half of lastyear. Results for the full year are expected to include a second half biasreflecting the timing of restructuring benefits and normal trading seasonality.”
Enquiries to:
| John Dean | IMI | Tel: +44 (0)121 717 3712 |
| Suzanne Bartch / Gayden Metcalfe | Teneo Blue Rubicon | Tel: +44 (0)203 757 9239 |
A live webcast of theanalyst meeting taking place today at 08:30am (GMT) will be available on the investorpage of the Group’s website: www.imiplc.com. The Group plans to release its next Interim ManagementStatement on 4 May 2017.
To read the full press release in Acrobat PDF format please click here