Good operational performance and accelerated strategic progress
Preliminary results, year ended 31 December 2020
|
|
Adjusted1 |
Statutory |
|||||
|
Continuing operations: |
2020 |
2019 |
Change |
Organic5 |
2020 |
2019 |
Change |
|
Revenue |
£1,825m |
£1,873m |
-3% |
-4% |
£1,825m |
£1,873m |
-3% |
|
Operating profit |
£285m |
£266m |
+7% |
+5% |
£227m |
£204m |
+11% |
|
Operating margin |
15.6% |
14.2% |
+140bps |
|
|
|
|
|
Profit before tax |
£274m |
£251m |
+9% |
|
£214m |
£189m |
+13% |
|
Basic EPS2 |
79.7p |
73.2p |
+9% |
|
62.7p |
57.6p |
+9% |
|
Operating cash flow3 |
£335m |
£299m |
|
|
|
|
|
|
Dividend per share4 |
22.5p |
41.1p |
|
|
|
|
|
|
Net debt |
£316m |
£438m |
|
|
|
|
|
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 Adjusted operating cash flow, as described in note 9.
4 The 2019 Dividend per share includes the postponed dividend that was paid in September 2020.
5 Change shown after adjusting for exchange rates and excluding the impact of acquisitions (see note 1).
Key points
- Resilient organic revenue 4% lower than 2019.
- Improved margins in all three divisions.
- Strong adjusted operating cash flow, up 12%.
- Structural rationalisation programmes delivering expected efficiency gains.
- Final dividend of 15.0p reflects previously announced reset of earnings cover baseline.
- Net debt / EBITDA improved to 0.8x (2019: 1.2x).
- Cultural shift progressing well with increased resource dedicated to growth.
- Strong customer and employee engagement throughout the Coronavirus pandemic.
Lord Smith of Kelvin, Chairman, commented:
“2020 has been an extraordinary year in which IMI has demonstrated resilience, ambition and absolute commitment to supporting our customers and our wider communities. There is little question that significant drivers of our recent performance have been our unifying and empowering purpose “Breakthrough Engineering for a better world”, as well as a rejuvenated culture. It is the way in which these results were delivered that is particularly encouraging and bodes well for continuing improvement.”
Roy Twite, Chief Executive, added:
“Our top priority is the safety of our people, and I could not be prouder of the commitment our employees made to keep our facilities and communities safe throughout 2020. All three divisions also advanced their strategic initiatives and delivered resilient results in a tough year. Margins have improved and our culture change and growth initiatives are gaining traction. IMI has also advanced its ESG agenda as we work to build on the positive contribution our solutions make to the wider world. We expect further progress during 2021.”
“Based on current market conditions, and assuming no worsening impact from Coronavirus, we expect the Group to deliver 2021 adjusted earnings per share of between 75p and 82p.”
Enquiries to:
|
John Dean |
IMI |
Tel: +44 (0)121 717 3712 |
|
Stephen Malthouse / Jane Glover |
Headland PR |
Tel: +44 (0)7734 956 201 / |
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 6 May 2021.
To read the full press release in Acrobat PDF format please click here