IMI plc
Preliminary results, year ended 31 December 2014
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Adjusted1 |
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Statutory |
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Continuing operations: |
2014 |
2013 |
Change |
Organic4 |
2014 |
2013 |
Change |
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Revenue2 |
£1,686m |
£1,744m |
-3% |
+2% |
£1,692m |
£1,743m |
-3% |
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Operating profit2 |
£298m |
£322m |
-7% |
-1% |
£270m |
£271m |
-0% |
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Operating margin2 |
17.7% |
18.4% |
-70bps |
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Profit before tax |
£278m |
£298m |
-7% |
£246m |
£249m |
-1% |
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Total profit3 |
£217m |
£232m |
-6% |
£671m |
£227m |
+196% |
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Basic EPS3 |
78.0p |
72.6p |
+7% |
243.4p |
71.0p |
+243% |
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Dividend per share |
37.6p |
35.3p |
+7% |
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Net debt |
£200m |
£199m |
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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.
4 Change shown on an organic basis after adjusting for exchange rate movements and excluding the results of disposals and acquisitions for the period for which there is no comparator.
Highlights:
- Organic revenue growth of 2%
- Strong sterling adversely impacted revenue by £96m and operating profit by £18m
- Recommending a 7% increase in full year dividend
- Exceptional profits of over £0.5 billion on non-core disposals and £620m cash returned
- New strategy embedded across the Group
- Strategic growth initiatives beginning to deliver early benefits
Roberto Quarta, Chairman, commented:
“2014 was a year of good progress for the Group.In particular, in the first half of the year we undertook a detailed strategic review of all our activities and developed a robust growth plan to harness the Group’s full potential and deliver accelerated growth and long-term shareholder value.”
Mark Selway, Chief Executive added:
“Despite challenging economic and market conditions in a number of our key sectors, we delivered results in line with expectations while at the same time making significant investment which will drive future growth. Our new strategic plan is now being executed across the Group and I am pleased to report that we are already starting to see early signs of tangible benefits.
“In 2015, based on current market conditions and excluding the impact of exchange rate movements, we expect the Group to deliver modest organic revenue growth weighted towards the second half with margins slightly lower than in 2014 reflecting the impact of the disposal of Eley and acquisition of Bopp & Reuther by the Critical Engineering division and the ongoing investments we are making in all our businesses as we ready them for accelerated long-term growth.”
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 next Interim Management Statement on 7 May 2015.
To read the full press release in Acrobat PDF format please click here.