Invensys posts modest increase in revenue as order intake falls

Engineering and IT group Invensys reported a modest increase in annual revenue as rise in orders at its operations management division offset a decline at its controls arm.

Engineering and IT group Invensys reported a modest increase in annual revenue as rise in orders at its operations management division offset a decline at its controls arm.

Revenue rose 2.0% to £1.79bn in the year to March 31st, compared to £1.76bn a year earlier, despite a 3.0% fall in order intake to £1.70bn from £1.7bn.

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.

Nevertheless, operating profit jumped to £131m, up 41% from the prior year's £93m, and underlying earnings per share increased 60% to 8.5p from 5.3p.

Earlier this month, the company disposed of Invensys Rail for £1.74bn following a strategic review which highlighted the likely consolidation in global rail markets.

Chief Executive, Wayne Edmunds, said the disposal enabled the company to deal with its legacy UK pension issues and provided funds for future investments.

"It has also allowed us to carry out a reorganisation of the group, removing our previous divisional structure and providing significant cost savings of £25m per annum by April 2014," he said.

Invensys recommended a final dividend of 2.85p per share, bringing the total annual dividend to 4.6p, a 5.0% increase on the previous year.

Looking ahead, the group expects to see improved performance due to growth in higher-margin segments, particularly in software, and the benefits of its reorganisation.

Shares dropped 0.94% to 390.50p at 09:50 Thursday.

RD

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