A resilient performance in exceptional times

Dividend payment & guidance reinstated

Interim results, six months ended 30 June 2020

 

Adjusted1

Statutory

Continuing operations:

2020 H15

2019 H1

Change

Organic5

2020 H1

2019 H1

Change

Revenue

£867m

£910m

-5%

-6%

£867m

£910m

-5%

Operating profit

£121m

£118m

+3%

0%

£102m

£101m

+1%

Operating margin

14.0%

13.0%

+100bps

 

 

 

 

Profit before tax

£116m

£110m

+5%

 

£94m

£93m

+1%

Basic EPS2

33.6p

32.1p

+5%

 

27.3p

28.4p

-4%

Operating cash flow3

£107m

£101m

+6%

 

 

 

 

Interim dividend per share4

7.5p

14.9p

-50%

 

 

 

 

Net debt

£420m

£516m

 

 

 

 

 

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 11 to the financial statements.
4 In addition to the interim 2020 dividend per share of 7.5p, the final 2019 dividend per share of 26.2p has also been reinstated (see note 7).
5 After adjusting for exchange rates and excluding the impact of acquisitions (see note 3).

Key Points

  • Coronavirus response measures continue to protect our people, businesses and stakeholders
  • Resilient operational performance in demanding circumstances
  • Margin improvement in all three divisions
  • Temporary surge in ventilator demand supporting results
  • Rationalisation projects deliver £19m savings; on track for targeted £30m savings in full year
  • Reorganisation into commercially focused business units showing early benefits
  • Reinstatement of 2019 final dividend
  • Dividend for 2020 reset to establish baseline earnings cover of 3 times
  • Reinitiating qualified guidance

Roy Twite, Chief Executive, said:

“I want to thank all of our employees for their exceptional dedication to protect each other and the business in the first half of the year. Our results confirm the resilience and quality of IMI’s business model in what have been exceptional and demanding circumstances. Whilst we continue to protect our employees and operations, we have also been helping our customers, broadening our reputation for delivering industry solutions, and readying ourselves for when markets improve.”

“As a result of the robust profit and cashflow performance in the first half, we are revisiting two decisions taken earlier in the year. Firstly, our decision to suspend the 2019 final dividend payment has now been reversed, and we will make that payment in full. We will also reset our dividend for 2020 to a level that enables IMI to more effectively deliver on its long-term growth ambitions. Finally, IMI is reinitiating guidance with this announcement, albeit on a qualified basis given the continued uncertainty regarding any future impacts from the Coronavirus.”

“Based on current market conditions, and assuming no worsening of the current Coronavirus impact, we expect 2020 adjusted EPS of 65p to 70p.”

Enquiries to:

John Dean

IMI

Tel: +44 (0)121 717 3712

Stephen Malthouse / Jane Glover

Headland PR

Tel: +44 (0)7734 956 201 /
+44 (0)7884 742 400

A live webcast of the analyst meeting taking place today at 08:30am (BST) 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 5 November 2020.

To read the full press release in Acrobat PDF format please click here