16 August 2007
16 August 2007
Investigation within the Severe Service business
IMI plc has initiated an investigation into possible irregular payments
associated with certain trading contracts entered into by its Severe Service
business, which may be in breach of the law and the Company's policies and
The Company is committed to the highest ethical standards and has retained
external counsel and forensic accountants to conduct a thorough independent
investigation which will result in appropriate action being taken, including a
number of employee suspensions. IMI has made appropriate proactive notifications
to the relevant authorities and will co-operate fully with any enquiry from
those authorities relating to this matter.
The early indications are that these irregular payments involve a number of
commission agents. In total, commission agents represent about 20% of Severe
Service business or circa £60-70m of sales. Typically total commission payments
across our Severe Service business in recent years have been around £3m to £4m
each year. At this early stage we have yet to determine the number or value of
any improper payments.
IMI is doing everything possible to minimize disruption to the business.
As previously announced IMI intends to issue its interim accounts on 3 September
- Ends -
For further information contact:
Graham Truscott, Communications Director Tel: 0121 717 3712
Weber Shandwick Financial
Nick Oborne / Stephanie Badjonat / Charlie Hooper Tel: 020 7067 0700
Note to editors:
IMI is a dynamic, worldwide company delivering innovative engineering solutions
to leading global customers in clearly defined niche markets. Its five
businesses share a common goal - to convert their industry knowledge and market
insight into customised, design-engineered solutions which create customer
advantage and value. These include severe service valves, motion and fluid
control systems, indoor climate controls, beverage dispense systems, and
merchandising display systems for retail operations.
Close customer relationships, strong positions in growing markets and clear
differentiation through technological innovation or service are the defining
characteristics of all IMI businesses.
IMI is quoted on the London Stock Exchange. Information about IMI plc can be
found on the website: www.imiplc.com.
This information is provided by RNS
The company news service from the London Stock Exchange