Financial Express (Holdings) Limited (“we”, “our”, “us” and derivatives) are committed to protecting and respecting your privacy. This Privacy Policy, together with our Terms of Use, sets out the basis on which any personal data that we collect from you, or that you provide to us, will be processed by us relating to your use of any of the below websites (“sites”).

  • FEAnalytics.com
  • FEInvest.net
  • FETransmission.com
  • Investegate.co.uk
  • Trustnet.hk
  • Trustnetoffshore.com
  • Trustnetmiddleeast.com

For the purposes of the Data Protection Act 1998, the data controller is Trustnet Limited of 2nd Floor, Golden House, 30 Great Pulteney Street, London, W1F 9NN. Our nominated representative for the purpose of this Act is Kirsty Witter.

WHAT INFORMATION DO WE COLLECT ABOUT YOU?

We collect information about you when you register with us or use any of our websites / services. Part of the registration process may include entering personal details & details of your investments.

We may collect information about your computer, including where available your operating system, browser version, domain name and IP address and details of the website that you came from, in order to improve this site.

You confirm that all information you supply is accurate.

COOKIES

In order to provide personalised services to and analyse site traffic, we may use a cookie file which is stored on your browser or the hard drive of your computer. Some of the cookies we use are essential for the sites to operate and may be used to deliver you different content, depending on the type of investor you are.

You can block cookies by activating the setting on your browser which allows you to refuse the setting of all or some cookies. However, if you use your browser settings to block all cookies (including essential cookies) you may not be able to access all or part of our sites. Unless you have adjusted your browser setting so that it will refuse cookies, our system will issue cookies as soon as you visit our sites.

HOW WE USE INFORMATION

We store and use information you provide as follows:

  • to present content effectively;
  • to provide you with information, products or services that you request from us or which may interest you, tailored to your specific interests, where you have consented to be contacted for such purposes;
  • to carry out our obligations arising from any contracts between you and us;
  • to enable you to participate in interactive features of our service, when you choose to do so;
  • to notify you about changes to our service;
  • to improve our content by tracking group information that describes the habits, usage, patterns and demographics of our customers.

We may also send you emails to provide information and keep you up to date with developments on our sites. It is our policy to have instructions on how to unsubscribe so that you will not receive any future e-mails. You can change your e-mail address at any time.

In order to provide support on the usage of our tools, our support team need access to all information provided in relation to the tool.

We will not disclose your name, email address or postal address or any data that could identify you to any third party without first receiving your permission.

However, you agree that we may disclose to any regulatory authority to which we are subject and to any investment exchange on which we may deal or to its related clearing house (or to investigators, inspectors or agents appointed by them), or to any person empowered to require such information by or under any legal enactment, any information they may request or require relating to you, or if relevant, any of your clients.

You agree that we may pass on information obtained under Money Laundering legislation as we consider necessary to comply with reporting requirements under such legislation.

ACCESS TO YOUR INFORMATION AND CORRECTION

We want to ensure that the personal information we hold about you is accurate and up to date. You may ask us to correct or remove information that is inaccurate.

You have the right under data protection legislation to access information held about you. If you wish to receive a copy of any personal information we hold, please write to us at 3rd Floor, Hollywood House, Church Street East, Woking, GU21 6HJ. Any access request may be subject to a fee of £10 to meet our costs in providing you with details of the information we hold about you.

WHERE WE STORE YOUR PERSONAL DATA

The data that we collect from you may be transferred to, and stored at, a destination outside the European Economic Area (“EEA”). It may be processed by staff operating outside the EEA who work for us or for one of our suppliers. Such staff may be engaged in, amongst other things, the provision of support services. By submitting your personal data, you agree to this transfer, storing and processing. We will take all steps reasonably necessary, including the use of encryption, to ensure that your data is treated securely and in accordance with this privacy policy.

Unfortunately, the transmission of information via the internet is not completely secure. Although we will do our best to protect your personal data, we cannot guarantee the security of your data transmitted to our sites; any transmission is at your own risk. You will not hold us responsible for any breach of security unless we have been negligent or in wilful default.

CHANGES TO OUR PRIVACY POLICY

Any changes we make to our privacy policy in the future will be posted on this page and, where appropriate, notified to you by e-mail.

OTHER WEBSITES

Our sites contain links to other websites. If you follow a link to any of these websites, please note that these websites have their own privacy policies and that we do not accept any responsibility or liability for these policies. Please check these policies before you submit any personal data to these websites.

CONTACT

If you want more information or have any questions or comments relating to our privacy policy please email publishing@financialexpress.net in the first instance.

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IMI PLC (IMI)

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Thursday 11 November, 2010

IMI PLC

Interim Management Statement

RNS Number : 9913V
IMI PLC
11 November 2010
 



11 November 2010

 

IMI plc ("IMI" or "the Group")

Interim Management Statement

 

IMI, the international engineering group, issues the following Interim Management Statement, which covers the period from 1 July to 10 November 2010. 

 

Current trading and Outlook

The positive momentum seen in the first half has continued into the second half with good progress across most areas of the Group.  Overall revenues in the ten months to the end of October are now up 6% on a constant currency basis. Volumes within Fluid Power, in particular, have continued to strengthen, more than offsetting the continuing challenging conditions within the fossil power sector of our Severe Service business.   This strong revenue performance, together with further positive margin improvement, leads us to expect earnings per share before exceptional items for the full year to be at the middle to upper end of latest analyst expectations, which now range between 62p and 66p.   

 

Whilst the macro-economic environment continues to be uncertain, IMI is well placed to capitalise on the long term favourable trends in clean fuel, energy efficiency, environmental control and healthcare expenditure.  Accordingly we are increasing our investment in sales and new product development resource focused in these areas, with a particular emphasis on the emerging markets.

 

Severe Service

Our Severe Service business, which operates in later cycle markets, has seen total order intake up 9% in the ten months to the end of October over the same period last year.  The strong recovery in our Oil and Gas markets has continued, with year to date order intake up around 80% over the prior period.  Activity levels in the Aftermarket and Nuclear businesses also remain healthy.  The Fossil Power sector, however, remains very challenging with the improvement in enquiry levels noted earlier in the year only slowly converting to a recovery in order intake.  As a result of lower than expected Fossil Power shipments, we expect 2010 full year revenues for Severe Service to be down around 10-15% on last year, with margins, as a consequence, slightly lower.  However, the increased order intake year to date, together with the ongoing strength in the Nuclear and Aftermarket businesses, should support a return to growth next year.

 

Fluid Power

We have continued to see good growth in our Fluid Power business, with revenues in the ten months to the end of October up 33% on 2009 on an organic basis.  Strong momentum has been maintained in our key global sectors - Commercial Vehicles, Life Sciences, Rail, Energy and Food & Beverage.   We also remain focused on margin improvement to maximise the profit drop through from these higher volumes. Good progress continues to be made with the transfer of production lines to our expanded lower cost manufacturing facilities in China, Czech Republic and Mexico.  Fluid Power margins are expected to show further progress on the levels achieved in the first half of the year.   

 

Indoor Climate

The Indoor Climate business is continuing to perform well through the important heating season of September to November.  Following a slower start to the year, activity levels have continued to strengthen, with revenues on a constant currency basis over the ten months to the end of October now slightly ahead of last year.  We continue to benefit from the cost saving initiatives implemented over the last two years and second half margins are now expected to show progress over the record levels achieved in the second half of last year.

 

Longer term we continue to believe that the prospects for this business remain very attractive as the demand for more energy efficient commercial and residential building solutions, driven by energy costs and environmental legislation, continues to increase both in the new build and, importantly, in the refurbishment markets. 

 

Beverage Dispense

Volumes in Beverage Dispense have continued to strengthen in the second half with revenues to the end of October up 5% on an organic basis over last year.  This good performance continues to be driven by positive market trends in North America and Asia offsetting more challenging market conditions in Europe.  In addition, 3Wire our North American parts business, continues to deliver attractive growth.   

 

The business remains focused on margin improvement through a combination of growth in new product sales, further cost saving initiatives and, as previously detailed, by exiting a number of lower margin products.  Whilst margins in Beverage are seasonally stronger in the first half we expect second half margins to be better than in the second half of last year.   

 

Merchandising

As expected, Merchandising has seen stronger shipment growth in the second half with revenues on an organic basis in the ten months to the end of October now slightly ahead, having been down 12% in the first six months.  This performance reflects some good project wins, notably in the automotive sector. 

 

Operating margins have continued to improve in the second half as the business focuses on higher margin projects and delivers operational efficiencies.  We now expect Merchandising to report improved margins in the second half compared to the same period of last year.

 

Financial position and restructuring

The Group continues to be highly cash generative, driven by further improvements in inventory turns despite some dual running of manufacturing facilities as we transition to lower cost facilities.  As a consequence, we anticipate cash conversion for the second half to be in excess of 100% leading to a significant reduction in net debt before the impact of the Zimmermann & Jansen acquisition which is expected to complete around the year end. 

 

As highlighted above, our moves to new lower cost manufacturing facilities, most notably within the Severe Service and Fluid Power divisions, continue to progress well.  During the second half we have accelerated this process and now anticipate restructuring costs for the year to be nearer £15m, up from the £10m indicated at the interim results.

 

On 2 September 2010, following the conclusion of an arbitration process, £7.4m was received from Polypipe in settlement of the earn out provisions attached to the sale of that business in September 2005.  This will be reported within discontinued operations.

 

Severe Service acquisition

On 25 October 2010 IMI announced that it had agreed to acquire Zimmermann & Jansen ("Z&J"), a leading engineering business specialising in severe service valves and related flow control products, for an enterprise value of €135m.  The acquisition of Z&J is highly complementary, both in market terms, extending IMI's severe service interests into downstream Oil and Gas (Refining and Petrochemical) and into Iron and Steel; and in technology terms, with Z&J's highly acclaimed isolation valve technology a natural fit alongside the Truflo technology acquired in 2006.  The use of IMI's global sales and aftermarket infrastructure is expected to improve Z&J's geographic penetration, in much the same way it has done for the Truflo business. The acquisition is subject to regulatory clearances which are expected to be received by 31 December 2010.

 

IMI will announce its preliminary results for the year ending 31 December 2010 on 3 March 2011.

 

Enquiries to:

 

Will Shaw                                              IMI                                Tel:       +44 (0)121 717 3712

Rollo Head / Clare Hunt                          Finsbury                        Tel:       +44 (0)20 7251 3801

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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