Organic revenue decline of 5%
Currency impact reduced revenue by £72m and operating profit by £13m
Strong cash generation up 25% at £192m
Recommending a 2% increase in full year dividend
Strategic growth initiatives delivering early benefits
Lord Smith of Kelvin, Chairman, commented:
"We have continued to deliver our strategic plan against a difficult economic backdrop. All of the work that has been and continues to be done will ensure we harness IMI's full potential and deliver medium term growth and long-term shareholder value.
"While the Group's organic growth strategy provides good prospects for profitable expansion, our strong cash generation and balance sheet give us the full range of options to create growth through business development and acquisitions."
Mark Selway, Chief Executive, added:
"We made steady progress on a number of fronts despite tough trading conditions in many of our markets. Our financial results were broadly in line with market expectations and we made substantial progress across a range of our strategic initiatives which have improved our operational performance and enhanced our market competitiveness.
"Based on current market conditions, and on an organic constant currency basis, we expect first half revenues to reflect a similar percentage reduction to that experienced in the full year of 2015. Due to reduced sales volumes we expect first half margins to be around 250 basis points lower than the first half of 2015. In the second half of 2016 the benefits of restructuring activities, combined with normal business phasing, are expected to result in improved revenues and margins when compared to the first half of the year."