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IMI PLC (IMI)

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Monday 09 September, 2002

IMI PLC

Interim Results

IMI PLC
09 September 2002





9 September 2002


         IMI plc presents its  First Half Results

IMI   plc,  the  major  international  engineering  group,   today
announced  its  interim results for the six months ended  30  June
2002.

                                                  2002     2001

Sales                                            £826m    £847m

Results before rationalisation & restructuring *

 Profit before tax                              £66.0m   £68.6m

 Adjusted earnings per share                     12.5p    14.5p

Rationalisation & restructuring                 £14.1m   £11.8m

Net borrowings                                   £329m    £414m

Gearing                                            65%      81%

Interest cover before rationalisation &
 restructuring *                                    8x       6x


* Before goodwill amortisation and exceptional items


-  Solid progress with strategic initiatives

-  Another strong cash performance

- Interim dividend maintained at 6.0p


CHAIRMAN'S STATEMENT


New  products and  market share gains limited volume reduction  to
around  2%  compared  to  the first half  of  last  year.   Market
conditions generally remain subdued.

We   have  pressed  ahead  with  our  restructuring  measures  and
investment  programme.   We  have made  solid  progress  with  the
transfer of manufacturing activities to Mexico and China  and  are
on  target  for our new plants in the Czech Republic to  be  fully
operational early next year.  Overhead reduction is being achieved
as we continue with the streamlining of our businesses.  Resources
in  technology,  customer relationship management and  e-commerce,
particularly  our beverage aftermarket initiative (Bevcore),  have
all been increased.

The  drive to reshape the Group is continuing.  Earlier this  year
we  announced the sale of the Eley shotgun cartridge business  and
the  acquisition of STI in our Severe Service business.  In August
we completed the sale of the Copper Fittings business for £65m and
acquired  DCI Marketing in our Merchandising Systems business  for
£43m.  Since January 2001 we have realised £120m from the sale  of
businesses and spent £90m on acquisitions.

Cash  generation remains sharply in focus and it  is  pleasing  to
report  another strong performance with operating cash flow  after
restructuring increasing to £60m, compared to £48m  in  the  first
half of last year.  Free cash flow before dividend was £50m (2001:
£21m).

When  we embarked on our repositioning of IMI it was our intention
to maintain dividends throughout the period of restructuring.  The
interim dividend is being maintained at 6.0p at a cost of £21m.


                          Results Summary

Reported  sales  at  £826m compare with £847m  last  year.   After
adjusting for acquisitions and first half disposals, organic sales
were £15m (2%) lower.  Operating profit before restructuring costs
was  £75.5m (2001: £82.6m) after revenue investments of £9m (2001:
£1m).   The  interest  charge at £9.5m was  £4.5m  lower,  leaving
profit  before  rationalisation and restructuring costs,  goodwill
amortisation  and  exceptional  items  down  4%  at  £66m   (2001:
£68.6m).

Rationalisation  and  restructuring costs charged  against  profit
were  £14.1m  (2001:  £11.8m), resulting  in  profit  before  tax,
goodwill  amortisation  and exceptional  items  of  £51.9m  (2001:
£56.8m).

For  2002  the  effective  rate of tax on profit  before  goodwill
amortisation and exceptional items, is expected to  be  32%.   The
2001  tax  charge  benefited from overseas tax credits  on  profit
distributions and the effective rate was 25%, with the  underlying
rate the same as this year at 32%.

Adjusted   earnings   per   share  (before   rationalisation   and
restructuring costs, goodwill amortisation and exceptional  items)
were  12.5p  (2001: 14.5p).  It is estimated that the  first  half
2001  adjusted  earnings  per share benefited  by  1.3p  from  the
reduction in the tax charge.

Borrowings at the end of June were £329m, a reduction of £16m from
the  end of December 2001 and £85m from the end of June last year.
Gearing  was  65% (June 2001: 81%; December 2001: 70%).   Interest
cover  for  the  six  months  based  on  operating  profit  before
rationalisation  and  restructuring costs was  8  times  (2001:  6
times)  and  after  rationalisation and restructuring  costs,  6.5
times (2001: 5 times).



OPERATIONS REVIEW

Fluid Controls

Our  Severe Service valves business continued its record of growth
with  another  increase in sales and profit.    Strong  new  valve
shipments  and  a  growing order intake underpin our  decision  to
continue the investment in specialist sales engineers and capacity
expansion.   The  new  facility in Tijuana, Mexico  is  coming  on
stream  and STI of Italy, purchased earlier in the year, has  been
integrated fully.

Fluid Power volumes remain disappointing, around 9% lower than the
first half of last year.  This included a difficult second quarter
at  our  automotive tooling subsidiary, ISI.  The momentum  behind
the cost reduction initiatives is gathering pace with a good start
to   manufacturing   in   Mexico   and   simplification   of   the
infrastructure leading to reductions in headcount.  The pace  will
accelerate  in the second half and the new facility in  the  Czech
Republic  is expected to be fully operational early in 2003.

Indoor Climate, as expected, suffered lower volumes in Germany but
the  impact  on profit was restricted by cost saving  initiatives.
Implementation  of  the  downsizing of the  German  operations  is
continuing  and  benefits will materialise  in  the  second  half.
Balancing valve volumes generally are about level with last  year.
We  again added to our European commissioning capability with  the
purchase of a small French service company in June.



Retail Dispense

Beverage  Dispense sales in the US included the roll  out  of  the
major  order for new frozen carbonated beverage equipment received
late  last  year, most of which was shipped in the first  half  of
this  year.  The benefit of this order has more than absorbed  the
expected   costs  arising from the closure of two  US  plants  and
transfers  to  Mexico  and  China,  and  the  investment  cost  of
establishing  Bevcore .  Underlying  volumes   were   generally
around 3% ahead of last year.

Merchandising Systems continued to see low levels of  demand  with
some  customers'  advertising and promotional spend  remaining  on
hold since the events of 11 September 2001.  We are confident that
this  market will see strong long term growth and were pleased  to
secure  the  acquisition of DCI Marketing in early  August.   With
this  addition,  the pro forma annual sales of  our  Merchandising
Systems business are around $250m, up from $100m in 2000.

Building Products

In   Building  Products,  the  pipe  businesses  within   Polypipe
performed  well despite upward pressure on PVC prices.   Elsewhere
in  Polypipe the results were mixed.  Copper Tube had a  difficult
period  with  a rising copper price putting pressure  on  margins.
Our  Copper  Fittings business, which was sold in  August,  had  a
solid six months trading performance.

Outlook

We   are  not  anticipating  any  improvement  in  general  market
conditions in the near term.  As a result of our restructuring and
rationalisation, however, the Group is better equipped  to  manage
in  difficult  trading environments, and we  remain  confident  of
reporting progress for the year as a whole.






GROUP PROFIT AND LOSS ACCOUNT




                                6 months to 30 June 2002


                                             Restructuring,
                                Before            goodwill
                        restructuring,        amortisation
                          goodwill and       & exceptional
                          exceptionals               items     Total

                        Notes       £m                  £m        £m
                      _______________________________________________


Turnover

Continuing operations       1      784                           784

Discontinued operations             42                            42
                      _______________________________________________
Total turnover                     826                           826
                      _______________________________________________
Operating profit            1
                      _______________________________________________
Continuing operations before
 rationalisation and
 restructuring                    71.7                          71.7

Rationalisation/restructuring                        (14.1)    (14.1)

Goodwill amortisation                                 (8.4)     (8.4)
                      _______________________________________________
Total continuing operations        71.7              (22.5)     49.2

Discontinued operations             3.8                          3.8
                      _______________________________________________
Operating profit                   75.5              (22.5)     53.0

Exceptional items

 Profit on disposal of
 discontinued operations                               1.0       1.0

 Profit on disposal of
  property                                             2.5       2.5
                      _______________________________________________
Profit before interest             75.5              (19.0)     56.5

Net interest payable               (9.5)                        (9.5)
                      _______________________________________________
Profit on ordinary activities
 before taxation                   66.0              (19.0)     47.0

Tax on profit               2     (21.1)               5.1     (16.0)
                      _______________________________________________
Profit on ordinary activities      44.9              (13.9)     31.0
 after taxation

Equity minority interests          (0.9)                        (0.9)
                      _______________________________________________
Profit for the financial year      44.0              (13.9)     30.1
                      _______________________________________
Dividends paid and proposed 3                                  (21.1)
                                                             ________
Transfer to reserves                                             9.0
                                                             ________
Adjusted earnings per share 4      12.5p

Earnings per share          4                                    8.5p

Diluted earnings per share  4                                    8.5p





GROUP PROFIT AND LOSS ACCOUNT Continued



                              Six months to          Year to
                              30 June 2001        31 December 2001


                                Before                Before
                        restructuring,         restructuring,
                          goodwill and          goodwill and
                          exceptionals   Total  exceptionals   Total

                                    £m      £m            £m      £m
                      _______________________________________________

Turnover

Continuing operations       1      778     778          1526    1526

Discontinued operations             69      69           116     116
                      _______________________________________________
Total turnover                     847     847          1642    1642
                      _______________________________________________
Operating profit            1
                      _______________________________________________
Continuing operations before
 rationalisation and
 restructuring                    77.9    77.9         139.9   139.9

Rationalisation/restructuring            (11.1)                (39.2)

Goodwill amortisation                     (8.0)                (16.4)
                      _______________________________________________
Total continuing operations       77.9    58.8         139.9    84.3

Discontinued operations            4.7     4.0          11.5     6.1
                      _______________________________________________
Operating profit                  82.6    62.8         151.4    90.4

Exceptional items

 Profit on disposal of
 discontinued operations                  19.6                  20.3

 Profit on disposal of
  property                                                       1.0
                      _______________________________________________
Profit before interest            82.6    82.4         151.4   111.7

Net interest payable             (14.0)  (14.0)        (25.3)  (25.3)
                      _______________________________________________
Profit on ordinary activities
 before taxation                  68.6    68.4         126.1    86.4

Tax on profit               2    (17.1)  (14.7)        (31.6)  (21.2)
                      _______________________________________________
Profit on ordinary activities
 after taxation                   51.5    53.7          94.5    65.2

Equity minority interests         (0.4)   (0.4)         (0.7)   (0.7)
                      _______________________________________________
Profit for the financial year     51.1    53.3          93.8    64.5
                              ________               ________
Dividends paid and proposed 3            (21.1)                (54.5)
                                        _______               ________
Transfer to reserves                      32.2                  10.0
                                        _______               ________
Adjusted earnings per share 4     14.5p                 26.7p

Earnings per share          4             15.2p                 18.3p

Diluted earnings per share  4             15.2p                 18.3p




GROUP BALANCE SHEET

                                     30 June   30 June   31 December
                                        2002      2001          2001
                                              restated

                                          £m        £m            £m
                                     _______________________________
Fixed assets
Intangible assets                      291.1     306.6         298.0
Tangible assets                        361.7     374.6         373.0
                                     _______________________________
                                       652.8     681.2         671.0
Current assets                       _______________________________

Stocks                                 313.5     328.4         312.2
Debtors                                342.0     380.9         311.1
Investments                              8.0       2.1           7.7
Cash and deposits                       67.9      59.0          58.2
                                     _______________________________
                                       731.4     770.4         689.2

Creditors:

amounts falling due within one year
Borrowings and finance leases         (149.3)   (123.5)       (141.5)
Other creditors                       (348.0)   (344.6)       (330.6)
                                      _______________________________
Net current assets                     234.1     302.3         217.1
                                      _______________________________
Total assets less current liabilities  886.9     983.5         888.1


Creditors:

amounts falling due after more than one year

Borrowings and finance leases         (248.0)   (349.8)       (262.0)
Other creditors                        (22.9)    (29.9)        (24.3)
Provisions for liabilities and
 charges                              (109.7)    (90.7)       (108.5)
                                      _______________________________
Net assets                             506.3     513.1         493.3
                                      ===============================


Capital and reserves

Called up share capital                 87.9      87.9          87.9
Share premium account                  133.0     132.3         132.4
Revaluation reserve                      1.0       1.0           1.0
Other reserves                           1.6       1.6           1.6
Profit and loss account                279.7     287.5         267.8
                                      _______________________________
Equity shareholders' funds             503.2     510.3         490.7
                                      _______________________________
Minority interests                       3.1       2.8           2.6
                                      _______________________________
                                       506.3     513.1         493.3
                                      ===============================



GROUP CASH FLOW STATEMENT

                                      6 months to 6 months to     Year to
                                          30 June     30 June 31 December
                                             2002        2001        2001
                                               £m          £m          £m
                                          _______________________________
Reconciliation of operating profit
 to net cash inflow from operating
 activities

Operating profit                             53.0        62.8         90.4
Depreciation/amortisation                    44.0        42.1         87.1
Stocks decrease/(increase)                    0.9       (12.2)         1.8
Debtors (increase)/decrease                 (35.4)      (42.0)        37.7
Creditors and provisions increase            17.7        22.9          3.7
                                          ________________________________
Net cash inflow from operating activities    80.2        73.6        220.7
                                          ________________________________




CASH FLOW STATEMENT

Net cash inflow from operating activities    80.2        73.6        220.7

Return on investments and servicing
 of finance                                 (11.4)      (14.1)       (25.8)
Taxation                                     (0.2)      (14.3)       (27.0)
Capital expenditure and financial
 investment                                 (19.1)      (24.3)       (60.4)
Acquisitions and disposals                   (2.5)        8.1          6.5
Equity dividends paid                       (33.4)      (33.4)       (54.5)
                                           _________________________________
Cash flow before use of liquid
 resources and financing                     13.6        (4.4)        59.5
Management of liquid resources              (15.8)       (4.3)         2.5
Financing
  Issue of ordinary shares                    0.7         0.2          0.3
  Increase/(decrease) in borrowings           2.4        21.8        (44.2)
                                            ________________________________
                                              3.1         22.0       (43.9)
                                            ________________________________

Increase in cash in the period                0.9         13.3         18.1
                                            ================================
Reconciliation of net cash to
 movement in net borrowings

  Increase in cash in the period              0.9         13.3         18.1
  Cash (inflow)/outflow from borrowings      (2.4)       (21.8)        44.2
  Cash outflow/(inflow) from movement
   in liquid resources                       15.8          4.3         (2.5)
                                            ________________________________
  Change in borrowings resulting from
   cash flows                                14.3         (4.2)        59.8
  Cash assumed with acquisitions              0.6            -            -
  Currency translation differences            1.0         (7.1)        (2.1)
                                            ________________________________
  Movement in net borrowings in the period   15.9        (11.3)        57.7
  Net borrowings at start of period        (345.3)      (403.0)      (403.0)
                                            ________________________________
  Net borrowings at end of period          (329.4)      (414.3)      (345.3)
                                            ================================



STATEMENT OF GROUP TOTAL RECOGNISED GAINS AND LOSSES



                                      6 months    6 months     Year to
                                    to 30 June  to 30 June 31 December
                                          2002        2001        2001
                                            £m          £m          £m
                                      ________________________________
Profit for the period                     30.1        53.3        64.5
Currency translation differences           2.9        (3.9)       (1.5)
Total recognised gains and losses     ________________________________
for the period                            33.0        49.4        63.0

Prior year adjustment from adoption   ======================
of FRS19:  Deferred tax                                           (1.9)
                                                            ___________
                                                                  61.1
                                                            ===========



GROUP HISTORICAL COST PROFITS AND LOSSES

There is no material difference between the profit before taxation
and  the  retained  profit  for each  period as shown in the Group
profit and loss account and their historical cost equivalent.




RECONCILIATION OF MOVEMENTS IN GROUP SHAREHOLDERS' FUNDS


                                         6 months    6 months     Year to
                                       to 30 June  to 30 June 31 December
                                             2002        2001        2001
                                                     restated
                                               £m          £m          £m
                                         ________________________________

Profit for the period                        30.1        53.3        64.5
Dividends                                   (21.1)      (21.1)      (54.5)
                                         ________________________________
                                              9.0        32.2        10.0

Previously written off goodwill taken
 through profit & loss account in
 arriving at the profit for the period          -         5.7         5.8

Other recognised gains and losses
 relating to the period                       2.9        (3.9)       (1.5)

New ordinary share capital issued             0.6         0.2         0.3
                                          _______________________________
Net increase in shareholders' funds for
 the period                                  12.5        34.2        14.6

Shareholders' funds at start of period      490.7       476.1       476.1
                                          _______________________________
Shareholders' funds at end of period        503.2       510.3       490.7
                                          ===============================



NOTES TO THE INTERIM FINANCIAL STATEMENTS

1. Segmental Analysis


                            Turnover           Operating Profit    Operating Assets
                         __________________  ____________________  __________________
                          6 mths 6 mths Year  6 mths 6 mths  Year  6 mths 6 mths Year
                              to     to   to      to     to    to      to     to   to
                              30     30   31      30     30    31      30     30   31
                            June   June  Dec    June   June   Dec    June   June  Dec
                            2002   2001 2001    2002   2001  2001    2002   2001 2001
                              £m     £m   £m      £m     £m    £m      £m     £m   £m
                         ___________________ ____________________  __________________
(i) by activity:

before goodwill amortisation and rationalisation/restructuring

Fluid Controls               328    342  682    29.3   36.2   64.9    265    283  246
____________________________________________  ____________________  _________________
Severe Service                69     55  132     7.4    5.4   13.8     32     22   29
Fluid Power                  196    219  416    11.9   19.4   29.0    194    216  189
Indoor Climate                63     68  134    10.0   11.4   22.1     39     45   28
____________________________________________  ____________________  _________________
Retail Dispense              223    189  382    22.6   19.4   37.2    130    146  125
____________________________________________  ____________________  _________________
Beverage Dispense            174    148  291    17.7   14.4   27.2    109    125   99
Merchandising Systems         49     41   91     4.9    5.0   10.0     21     21   26
____________________________________________  ____________________  _________________
Building Products            233    247  462    19.8   22.3   37.8    187    223  205
                           _________________  ____________________  _________________
Total continuing operations  784    778 1526    71.7   77.9  139.9    582    652  576
                           _________________  ____________________  _________________

after goodwill amortisation and rationalisation/restructuring

Fluid Controls                                  23.4   26.8   34.3
__________________________________________________________________
Severe Service                                   7.2    5.3   13.5
Fluid Power                                      7.3   10.5    3.4
Indoor Climate                                   8.9   11.0   17.4
__________________________________________________________________
Retail Dispense                                 14.7   17.2   27.7
__________________________________________________________________
Beverage Dispense                               10.4   12.4   18.5
Merchandising Systems                            4.3    4.8    9.2
__________________________________________________________________
Building Products                               11.1   14.8   22.3
                                               ___________________
Total continuing operations                     49.2   58.8   84.3
                                               ___________________


(ii) by geographical origin:

after goodwill amortisation and rationalisation/restructuring

UK                          256     269  503    15.5   20.1  24.7     209    256  223
Rest of Europe              241     262  505    20.4   23.1  28.8     209    208  180
The Americas                258     222  467    11.2   14.3  28.0     150    173  160
Asia/Pacific                 29      25   51     2.1    1.3   2.8      14     15   13
                            ________________   __________________  __________________
Total continuing operations 784     778 1526    49.2   58.8  84.3     582    652  576
                            ________________   __________________  __________________


(iii) turnover by geographical destination:


                         6 mths  6 mths   Year
                             to      to     to
                        30 June 30 June 31 Dec
                           2002    2001   2001
                             £m      £m     £m
                        ______________________
UK                          222     233    432
Germany                      82      92    180
Rest of Europe              172     187    356
USA                         232     196    401
Asia                         44      30     76
Rest of World                32      40     81
Total continuing         _____________________
 operations                 784     778   1526
                         _____________________

1.
   Segmental Analysis (continued)

   Discontinued operations

   The  amounts  shown for discontinued operations comprise  the
   turnover  and  operating  profits  for  the  copper  fittings
   businesses sold in August 2002 and the Eley shotgun cartridge
   business  sold  in  February  2002.   Both  businesses   were
   previously reported in Building Products and UK and  Rest  of
   Europe.   2001  comparatives also include a number  of  valve
   companies  sold in June 2001 which were located  in  the  UK,
   France and US.

   Rationalisation/restructuring

   Rationalisation/restructuring charge is analysed as follows:

                                  6 months to  6 months to     Year to
                                  30 Jun 2002  30 Jun 2002 31 Dec 2001
                                           £m           £m          £m
                                       _______________________________
Shown as rationalisation/restructuring
  of continuing operations               14.1         11.1        39.2
Included within discontinued operations     -          0.7         5.4
Total rationalisation/restructuring    _______________________________
 charge                                  14.1         11.8        44.6
                                       _______________________________
2. Taxation

   The  tax  rate  on  profit before goodwill  amortisation  and
   exceptional  items is around 32%, the same as the  underlying
   rate  last  year.  The actual rate in 2001 was 25%, resulting
   from repatriation of overseas earnings from prior years.

   Comparative  figures  have  been  restated  where   necessary
   following the adoption of
   FRS19: Deferred tax as at 31 December 2001.

3. Dividends

   The  Directors  have  declared an interim  dividend  for  the
   current  year of 6.0p per share (six months to 30 June  2001:
   6.0p)  which  will be paid on 21 October 2002 to shareholders
   on the register on 20 September 2002.

4. Earnings per share

   The  weighted  average number of shares in issue  during  the
   period   was  351.6m,  352.9m  diluted  for  the  effect   of
   outstanding  share  options (six  months  to  30  June  2001:
   351.4m,  351.6m  diluted).   Earnings  per  share  have  been
   calculated  on earnings of £ 30.1m, (six months  to  30  June
   2001: £53.3m).  The Directors consider that adjusted earnings
   per share figures, using earnings as calculated below, give a
   more meaningful indication of the underlying performance.

                              6 months to  6 months to     Year to
                              30 Jun 2002  30 Jun 2002 31 Dec 2001
                                       £m           £m          £m
                              ____________________________________
   Profit for the period             30.1         53.3        64.5
   Goodwill amortisation              8.4          8.0        16.4
   Exceptional items (after tax)     (4.1)       (19.1)      (20.5)
   Rationalisation/restructuring
   (after tax)                        9.6          8.9        33.4
                              ____________________________________
   Earnings for adjusted EPS         44.0         51.1        93.8
                              ____________________________________
5. Exchange rates

   The  profit  and  loss accounts of overseas subsidiaries  are
   translated into sterling at average rates of exchange for the
   period,  balance sheets are translated at period  end  rates.
   The main currencies are:

                     Average period       Balance sheet
                     ________________   _________________
                          rates               rates
                      June June   Dec   30 June  30 June 31 Dec
                      2002 2001  2001      2002     2001   2001
                      ____ ____  ____      ____     ____   ____

    Euro              1.61 1.60  1.61      1.54     1.66   1.63
    US Dollar         1.45 1.44  1.44      1.52     1.41   1.46



6. Financial information

   This  interim  statement  has been reviewed  by  the  Group's
   auditors  having  regard to the bulletin  Review  of  Interim
   Financial  Information,  issued  by  the  Auditing  Practices
   Board.   A  copy  of  their  unqualified  review  opinion  is
   attached.

   The  comparative figures for the year ended 31 December  2001
   are  not  the Company's statutory accounts for that financial
   year.   Those accounts have been reported on by the Company's
   auditors  and  delivered to the Registrar of Companies.   The
   report of the auditors was unqualified and did not contain  a
   statement  under Section 237(2) or (3) of the  Companies  Act
   1985.

   The  Interim  Report  will be posted to  shareholders  on  12
   September  2002 and will be available from the same  date  at
   the   Company's  registered  office,  Kynoch  Works,  Witton,
   Birmingham, B6 7BA.



NEXT TRADING ANNOUNCEMENT

Our  next  trading update will be issued on Wednesday 18  December 2002.



Enquiries to:

Graham Truscott   -    Communications Director     - Tel: 0121 332 2330


Press release available on the Internet at www.imiplc.com

Issued by:
Ben Padovan       -    Weber Shandwick Square Mile - Tel: 020 7950 2800




Independent review report by KPMG Audit Plc to IMI plc


Introduction

We  have  been  instructed by the company to review the  financial
information  set out on pages 5 to 11 and we have read  the  other
information contained in the interim report and considered whether
it contains any apparent misstatements or material inconsistencies
with the financial information.


Directors' responsibilities

The  interim report, including the financial information contained
therein, is the responsibility of, and has been approved  by,  the
Directors. The Directors are responsible for preparing the Interim
Report  in  accordance  with the Listing Rules  of  the  Financial
Services Authority which require that the accounting policies  and
presentation  applied to the interim figures should be  consistent
with  those  applied  in preparing the preceding  annual  accounts
except where they are to be changed in the next annual accounts in
which  case  any  changes, and the reasons for  them,  are  to  be
disclosed.


Review work performed

We  conducted our review in accordance with guidance contained  in
Bulletin 1999/4: Review of Interim Financial Information issued by
the  Auditing  Practices Board. A review consists  principally  of
making  enquiries  of  group management  and  applying  analytical
procedures  to the financial information and underlying  financial
data and, based thereon, assessing whether the accounting policies
and  presentation have been consistently applied unless  otherwise
disclosed.  A review is substantially less in scope than an  audit
performed  in  accordance  with Auditing Standards  and  therefore
provides a lower level of assurance than an audit.  Accordingly we
do not express an audit opinion on the financial information.


Review conclusion

On  the  basis  of  our review we are not aware  of  any  material
modifications that should be made to the financial information  as
presented for the six months ended 30 June 2002.




KPMG Audit Plc
Chartered Accountants
Birmingham
9 September 2002




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