Final Results

RNS Number : 2316S
  
Invensys PLC
  
14 May 2009
  
 
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14 May 2009


INVENSYS PLC
PRELIMINARY ANNOUNCEMENT FOR THE YEAR ENDED 31 MARCH 20091


Orders and cash flow performance demonstrate strength in current economic climate
Recommended resumption of dividend payments


Highlights


Orders rose by 38% (21% at CER2) to £2,806 million (2008: £2,036 million) driven by strong performances by Process Systems (up 19% at CER) and Invensys Rail (up 109% at CER) 


Revenue rose by 8% (down 4% at CER) to £2,284 million (2008: £2,108 million)


Operating profit3 down 4% (down 16% at CER) to £244 million (2008: £254 million) with an excellent performance from Invensys Rail, robust results from Process Systems offsetting a sharp second half decline in Invensys Controls


Underlying earnings per share4 reduced to 14.1p (2008: 17.0p) due mainly to higher restructuring costs


Basic earnings per share were 17.4p (2008: 21.1p)


Free cash flow was £296 million (2008: £64 million), with operating cash flow of £298 million (2008: £258 million) and operating cash conversion of 122% (2008: 102%)


Recommended final dividend of 1.5p per share (2008: nil)


Continued strengthening of financial position with no debt5, net cash and deposits totalling £309 million, together with a £400 million banking facility


Triennial review of UK Pension Scheme completed with no material change to the level of annual payments


Integration of Invensys Process Systems, Wonderware and Eurotherm to create a new division, Invensys Operations Management




Contact:

 
Invensys plc                      Steve Devany              tel: +44 (0) 20 7821 3758
                                             Annabel Michie            tel: +44 (0) 20 7821 2121        

 
Financial Dynamics         Andrew Lorenz
                                             Richard Mountain        tel: +44 (0) 20 7269 7121
  Ulf Henriksson, Chief Executive of Invensys plc, commented:


"I am pleased to be able to report that we achieved a robust performance during the past year against the background of one of the most difficult global economies in decades. We had strong order intake, which is testimony to our customers' belief in our ability to deliver projects and solutions. We had strong cash flow across the Group which has further strengthened our financial position; we are debt free with £309 million of net cash and deposits on the balance sheet.  


"We have managed our pension assets and liabilities to reduce volatility and have agreed the future funding schedule with the Trustee of the UK Pension Scheme with no change to our annual payments. We have undertaken restructuring where there has been a need to realign capacity and improve productivity. This overall performance has given the Board confidence to recommend the resumption of dividend payments to shareholders.  


"Relative to the market, there is strength in demand for our projects and solutions within our newly formed Invensys Operations Management division and Invensys Rail has been successful in both its core and export markets. This gives us confidence that both will continue to perform well during the current financial year. Invensys Controls faces continued weakness in its markets and we continue to manage it for positive cash flow. 


"Our strong financial position is enabling us to take further actions in the current year to protect profitability and cash flow across the Group and, based upon our current expectations, we anticipate that restructuring charges in the current year will be around £65 million.  


"Overall we look to the future with confidence and expect to improve our performance in the current year."


  Notes
 



1.      The financial information for the year ended 31 March 2009 is audited and has been prepared under the Group’s accounting policies for the year ended 31 March 2009. The Group’s accounting policies for the year ended 31 March 2009 are set out in the Annual Report and Accounts.