Results for Half Year Ended 30 September 2009

A solid performance in demanding markets

Highlights

• Orders were £1,079 million (H1 2008/09: £1,156 million), down 7% (18% at CER¹); two additional orders at Invensys Rail totalling £194 million were announced after the period end
• Revenue was £1,066 million (H1 2008/09: £1,090 million), down 2% (13% at CER)
• Operating profit² was £102 million (H1 2008/09: £120 million), down 15% (24% at CER)
• Underlying earnings per share³ were 4.9p (H1 2008/09: 9.2p)
• Basic earnings per share were 9.6p (H1 2008/09: 9.2p), including an exceptional gain of £36 million arising from the closure of US defined benefit pension plans
• Operating cash flow² was £92 million (H1 2008/09: £135 million) and operating cash conversion was 90% (H1 2008/09: 113%)
• Interim dividend of 1.0p per share (H1 2008/09: nil)
• Maintained strong financial position reflected in Standard & Poor’s award of investment grade rating - no debt⁷ and net cash and deposits totalling £290 million
  

Ulf Henriksson, Chief Executive of Invensys plc, commented:

"In the first half of the year, we have produced another solid performance despite the adverse economic climate. We are beginning to see some early signs of stabilisation and possible modest recovery. The benefits from our growth and productivity initiatives, restructuring and overhead reductions will underpin our performance in the second half.

"In the second half, we believe that Invensys Operations Management should have a significant improvement in performance and Invensys Rail will produce another robust result. Invensys Controls should also produce a good improvement in performance in a more stable market. Therefore, based upon our current views of our markets and exchange rates, we continue to expect that the Group will achieve an improvement in performance in the current year.

"Looking further out, I believe that we are building market share due to our people, our technologies and our execution capabilities. This creates a strong position from which Invensys should benefit as markets recover.”

Click here for more information.

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 7291

Notes

1. Unless otherwise stated, % change is measured as the change at constant exchange rates (CER) as a percentage of the H1 2008/09 adjusted base and is calculated based upon underlying amounts in £'000s.
2. All references to operating profit (OPBIT) and operating margin in this
announcement are before exceptional items and all references to operating cash flow are before restructuring spend.
3. Underlying earnings per share is calculated on profit from continuing operations
before exceptional US pension curtailment gain, PPP settlement credit and
exceptional finance costs and income.
4. Total Group comprises continuing and discontinued operations.
5. Continuing operations are Invensys Operations Management, Invensys Rail, Invensys Controls and Corporate.
6. IMServ has been transferred to Invensys Operations Management from Invensys Controls and comparatives have been restated accordingly.
7. 144A notes of £8 million due January 2010 remain outstanding; the Company has no right to call these notes prior to maturity but the notes have been covenant defeased through cash collateralisation. In addition, there were £1 million of finance leases at 30 September 2009.

Presentation and conference call

Ulf Henriksson, CEO, and Wayne Edmunds, CFO, will be hosting a presentation and conference call for analysts and fund managers at 9.00 a.m. GMT this morning:

Venue:

Financial Dynamics
Holborn Gate
26 Southampton Buildings
London WC2A 1PB

Dial-in details (please note that the access code is required).

UK and international: +44 (0) 20 3003 2666
US: +1 866 966 5335

Access code: Invensys

The presentation will be audio webcast live with slides, which can be accessed at:
Click here

A recording will be available at this address shortly after the completion of the call.
This announcement and the presentation materials are also available at
http://www.invensys.com

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.