Invensys plc announces preliminary results for the year ended 31 March 2007 and fourth quarter results for the three months ended 31 March 2007
Posted 24 May 2007PRELIMINARY RESULTS FOR THE YEAR ENDED 31 MARCH 20071
FOURTH QUARTER RESULTS FOR THE THREE MONTHS ENDED 31 MARCH 2007
A YEAR OF PROGRESS ACROSS THE GROUP
Full year highlights
• Orders from continuing operations2 were £2,694 million (2006:
£2,637 million), up 5% at constant exchange rates (CER)
• Revenue from continuing operations was £2,562 million (2006: £2,457
million), up 7% at CER
• Operating profit3 from continuing operations was £241 million
(2006: £191 million), up 30% at CER
• Operating margin3 for continuing operations was 9.4% (2006: 7.8%)
• Basic earnings per share from continuing operations were 10.1 pence
(2006: 6.2 pence loss per share)
• Operating cash flow from continuing operations was £266 million
(2006: £209 million)
• Net profit was £209 million (2006: £22 million), including
£133 million profit from discontinued operations (2006: £60 million)
• Free cash inflow was £93 million (2006: £75 million outflow)
• Net debt at 31 March 2007 was £166 million (31 March 2006: £757
million4)
Q4 highlights
• Orders from continuing operations2 were £697 million
(Q4 2006: £697 million), up 6% at constant exchange rates (CER)
• Revenue from continuing operations was £694 million (Q4 2006:
£682 million), up 8% at CER
• Operating profit3 from continuing operations was £79
million (Q4 2006: £71 million), up 16% at CER
• Operating margin3 for continuing operations was 11.4% (Q4
2006: 10.4%)
• Basic earnings per share from continuing operations were 4.4 pence (Q4
2006: 2.1 pence per share)
• Operating cash flow from continuing operations was £122 million
(Q4 2006: £94 million)
• Net profit was £36 million (Q4 2006: £12 million)
• Free cash inflow was £90 million (Q4 2006: £72 million outflow)
• Net debt reduced in the quarter by £83 million to £166 million
at 31 March 2007
Contact:
Invensys plc
| Steve Devany | tel: +44 (0) 20 7821 3758 |
| Kate Elliott | 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 report that we continue to make good progress in transforming Invensys into a high performing, sustainable and cohesive business. The successful completion of the 2006 Refinancing has significantly strengthened our financial position and enabled us to concentrate upon the operational issues that needed addressing across the business groups to improve our performance.
“Our priorities during the past three years have been about stabilising performance and starting to build a foundation for growth. Our primary focus has been upon the operational and cash performance of our businesses and improving our capital structure and therefore reducing the limitations the old structure placed upon our actions and value. The results we are announcing today demonstrate the progress that we have made and the Board believes that there is more value to be created as we build upon this stronger growth platform.
“During the new financial year, we expect that market conditions in our
long cycle businesses will remain generally positive but that the markets for
Controls will continue to be uncertain for some time. Our actions to improve
productivity will allow increased funding for research and development and sales
and marketing. Overall the Board is confident that the Group will make further
progress in the year ending 31 March 2008.”
Notes
1. The financial information for the year ended 31 March 2007 (audited) and
the quarter ended 31 March 2007 (unaudited) has been prepared under the Group’s
accounting policies for the year ended 31 March 2007. The Group’s accounting
policies for the year ended 31 March 2007 are set out in the Annual report and
accounts.
2. Continuing operations are Controls, Process Systems, Rail Group, APV and Eurotherm. Discontinued operations comprise Invensys Building Systems in the US and Asia Pacific (IBS) in 2006/07 and ABS EMEA, Lambda, Baker and IBS in 2005/06.
3. All references to operating profit and operating margin in this announcement are arrived at before exceptional items.
4. Total Group net debt at 31 March 2006 included £5 million of borrowings classified as held for sale in the consolidated balance sheet.
Presentation and conference call
1. Ulf Henriksson, CEO, and Steve Hare, CFO, will be hosting a presentation
for analysts and fund managers at 9.00 am this morning at:
Hospitality Suite
London Underwriting Centre
3 Minster Court
Mincing Lane
London EC3R 7DD
2. The presentation will also be available via a telephone conference call:
Tel: +44 (0)20 7806 1950 No password required
3. The presentation will be audio webcast live with slides, which can be accessed by following the link at the following address:
A recording will be available at this address shortly after the completion of the call.
4. This announcement and the presentation materials for the conference call are also available at http://www.invensys.com/isys/
Safe Harbor
This announcement contains certain statements that are forward-looking. These
statements involve risk and uncertainty because they relate to events and depend
on circumstances that will occur in the future. Forward-looking statements are
not guarantees of future performance. The Group's actual results of operations,
financial condition and liquidity, and the development of the industries in
which the Group operates, may differ materially from those made in or suggested
by these statements and a number of factors could cause the results and developments
to differ materially from those expressed or implied by these forward-looking
statements.
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