30 June 2003
30 June 2003
In accordance with its normal practice, IMI plc is today issuing a trading
update in advance of its interim results announcement for the six months ending
30 June 2003, due to be published on 8 September 2003.
On a like for like basis sales overall remain steady at similar levels to last
year with volume improvements in Fluid Controls offsetting the expected
reduction in Retail Dispense.
In Severe Service, the continuing investment in specialist sales engineers has
helped maintain a healthy growth in the order book with record levels of forward
business being booked for 2004 and beyond. In Fluid Power, new products and
sector specific initiatives have resulted in modest volume growth in an
otherwise flat market. Benefits arising from restructuring are continuing to
show through in margin improvement. Volumes in balancing valves and service
commissioning have offset a further decline in sales of thermostatic radiator
valves to the German market leaving Indoor Climate marginally ahead of last
Sales in Beverage Dispense were lower than 2002 which included £21m in respect
of the one-off contract for frozen carbonated beverage equipment. Trading
generally is somewhat subdued with demand in the US food service sector
remaining particularly soft. Our investment in new products has, however,
continued to stimulate demand in the key carbonates and beer sectors. Quotation
activity is stronger in Merchandising Systems overall and this is now feeding
through into a growing order book. DCI, acquired in August 2002, has performed
well and secured significant new long term business.
Building Products maintained its solid performance with UK volumes continuing to
be good. The pressure from increased polymer prices seen earlier this year is
Another good cash flow performance is expected although the first half of the
year will see the usual seasonal pattern of increased working capital.
Rationalisation costs for the year are still expected to be less than £10m
(2002: £32.2m) of which around £3m (2002: £18.1m) will be incurred in the first
2002 full year results included a SSAP24 pension credit of £5m (first half
£2.5m). It is anticipated that this credit will not be repeated in 2003. Despite
this, it is expected that the first half profit before rationalisation and
restructuring, goodwill amortisation and exceptional items will be ahead of the
£66.0m reported last year.
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Information about IMI plc can be found on the website: www.imiplc.com
For further information contact:
Graham Truscott, Communications Director Tel: 0121 717 3712
Weber Shandwick Square Mile
Nick Oborne / Peter Corbin Tel: 020 7067 0700
Note to Editors:
IMI plc is a dynamic international engineering business specialising in
innovative solutions and services for a wide range of industrial and retail
customers. Its future growth is being built on the two business areas of Fluid
Controls and Retail Dispense.
IMI's operations in these two business areas share the following core
characteristics: strong market positions in growing markets; the ability to be
clearly differentiated from their competitors through technological innovation
or after-sales service; and the provision of 'added value' through bespoke
solutions rather than a high manufacturing or material content.
IMI is quoted on the London Stock Exchange and is capitalised at approximately
This information is provided by RNS
The company news service from the London Stock Exchange