Business highlights
Disposal of Invensys Rail for £1,742 million was completed on 2 May 2013
- Agreements with Trustee of UK Pension Scheme implemented with contributions of £400 million to UK Pension Scheme and £225 million to a reservoir trust; no further contributions are expected to be made for the foreseeable future
- Subject to shareholder approval, return of £625 million of cash to shareholders (amounting to around 76 pence per share) to be implemented as soon as practicable
Invensys is now a focused supplier of industrial software, systems and control equipment, delivering state-of-the-art technologies to the world's major industries
Reorganisation of Group underway including the elimination of former divisional headquarters resulting in savings in overheads of £25 million per annum by April 2014
Improved transparency going forward with four new business segments - Software, Industrial Automation, Energy Controls and Appliance
Financial highlights for continuing operations
Order intake was £1,700 million (2012: £1,759 million), down 3% (down 2% at CER); Invensys Operations Management improved in the second half to produce orders in line with last year but Invensys Controls experienced a further market-led decline
Revenue was £1,792 million (2012: £1,764 million), up 2% (up 3% at CER), driven by order book conversion at Invensys Operations Management more than offsetting the decline at Invensys Controls
Operating profit rebounded to £131 million (2012: £93 million), up 41% (up 40% at CER) with our China Nuclear contracts stabilised
Underlying earnings per share were 8.5p (2012: 5.3p), up 60%
Operating cash flow was £136 million (2012: £124 million) and operating cash conversion was 104% (2012: 133%); net cash at year end (before receipt of Invensys Rail disposal proceeds) was £268 million (2012: £262 million)
Recommended final dividend of 2.85p per share (2012: 2.75p per share); total dividends for the year of 4.6p per share (2012: 4.4p per share), an increase of 5%
Wayne Edmunds, Chief Executive of Invensys, commented:
"The past year was transformational for Invensys. The disposal of Invensys Rail for £1,742 million has enabled us to deal with our legacy UK pension issues, recommend a substantial return of cash to shareholders and provided us with significant funds to invest in our future. It has also allowed us to carry out a reorganisation of the Group, removing our previous divisional structure and providing significant cost savings of £25 million per annum by April 2014.
"Invensys is now a focused supplier of industrial software, systems and control equipment, delivering state-of-the-art technologies to the world's major industries. The lines of business structure we began to put in place last year has enabled us to concentrate upon those areas with the greatest opportunities for growth and profitability. We now have significant resources to invest in these businesses which we will do in a thoughtful and disciplined manner to enhance shareholder value.
"In order to give the market greater insight into the performances of our businesses and their value, we have now changed our operating model and financial reporting with the lines of business grouped into four new business segments - Software, Industrial Automation, Energy Controls and Appliance.
"Looking ahead, we do not expect any significant changes to general market conditions in the near term but anticipate an improved performance due to continued growth in our higher-margin segments, especially Software, and the benefits of the Group reorganisation."
