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Annual Results

IMI in line despite difficult conditions

24 February 2017 07:35

IMI reports full-year results in with expectations despite difficult market conditions.

Reported group revenues were 6% higher at £1,649m (2015: £1,557m).

Excluding favourable exchange rate movements and disposals, group revenues on an organic basis were 5% lower due to continuing difficult end markets.

Reported segmental operating profit was 5% lower at £228m (2015: £239m).

Excluding the impact of favourable exchange rate movements and disposals, segmental operating profit was 17% lower on an organic basis reflecting lower volumes and continued investments, partly offset by the benefits of restructuring.

The group's operating margin was 13.8% (2015: 15.4%) and reported earnings per share were 4% lower at 59.8p (2015: 62.2p).

IMI said operating cash flow of £246m (2015: £232m) reflected the benefits of the group's lean initiatives which underpinned working capital improvements in the year.

Chairman Lord Smith of Kelvin said: "Despite difficult market conditions our results for 2016 were in-line with expectations and the Group continued to deliver against our ambitious strategic objectives.

"The combination of necessary management actions to address the current market difficulties and the continued progress in the execution of our strategy underpin our plans to enhance customer relationships, grow our market shares and further improve working capital.

"The group's balance sheet is strong and our operations are inherently cash generative which provides the headroom to invest in organic development and appropriate acquisition opportunities as they arise."

Chief executive Mark Selway added: "2016 was another year of important progress for IMI. As well as continuing to improve both our operational performance and our customer offering, we have acted decisively to ensure our cost-base continues to support our growth ambitions while also protecting near-term performance."

"Based on current market conditions, we expect organic revenues in the first half of 2017 to reflect a similar percentage reduction to the first half of 2016, with margins slightly lower than the first half of last year.

"Results for the full year are expected to include a second half bias reflecting the timing of restructuring benefits and normal trading seasonality."

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