Advertisement

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.

Advertisement - Article continues below

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

Advertisement
Advertisement

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

What gold, bonds and tech stocks have in common
Stockmarkets

What gold, bonds and tech stocks have in common

"Risk off" or "safe haven" assets such as gold and government bonds have been doing well lately. But so have riskier tech stocks. That seems to defy c…
10 Jul 2020
An economics lesson from my barber
Inflation

An economics lesson from my barber

On reopening his shop after lockdown, Dominic Frisby’s barber doubled his prices. It’s all part of the post-Covid inflation process – and we’re going …
8 Jul 2020
Share tips of the week
Share tips

Share tips of the week

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
10 Jul 2020