INVENSYS 
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INVENSYS PLC
25 July 2013
Invensys plc, the technology company, is publishing the following Interim Management Statement ahead of its Annual General Meeting which will be held at 11.00am this morning at The Queen Elizabeth II Conference Centre, Broad Sanctuary, Westminster, London SW1P 3EE:
Interim Management Statement
Q1 2013/14 performance
Overall the Group has made a solid start to the financial year with performance generally in line with our expectations. As expected, revenue in the first quarter was slightly behind the corresponding period last year but operating profit was significantly ahead.
The Group reorganisation that was implemented following the disposal of Invensys Rail remains on track to deliver the cost savings of £20 million per annum during this financial year, predominately in the second half, and an additional £5 million per annum next year.
Software
Demand in the Software segment remained strong although its results were slightly affected by some temporary slippage of licence revenue into Q2.
Industrial Automation
The Industrial Automation segment produced a satisfactory performance despite order intake being held back by further delays in the award of contracts for large greenfield projects. As a result, revenue was behind the corresponding period last year but operating profit was ahead due in part to tight cost control. Work on the China Nuclear contracts has continued in line with our expectations with commencement of delivery of equipment to site at the first reactor.
Energy Controls
The Energy Controls segment produced another satisfactory performance with revenue and operating profit in line with the corresponding period last year.
Appliance
The Appliance segment experienced variable trading conditions across its global markets resulting in further declines in revenue and operating profit. Europe and Asia Pacific remained weak but the important North American market (57% of FY 2013 revenue) showed increasing signs that a good recovery is developing with a significant pipeline of orders already booked for Q2.
Financial position
At 30 June 2013, the Group had net cash of £581 million following receipt of the proceeds of the disposal of Invensys Rail, the payments in respect of the pension agreements, the return of cash to shareholders and the usual seasonal working capital outflow.
Outlook
As highlighted at the preliminary results in May 2013, we do not expect any significant changes to general market conditions in the near term and continue to expect the Group to improve its performance for the year helped by growth in its higher margin Software segment and the benefits of the group reorganisation that was implemented following the disposal of Invensys Rail.
Indicative offer from Schneider Electric SA
On 11 July 2013, we announced that we had received an indicative offer from Schneider Electric SA (the Possible Offer). A copy of that announcement is available on the Group's website at www.invensys.com.Invensys and Schneider remain in discussions about the details of the Possible Offer which is conditional on, amongst other things, diligence and there can be no certainty that any firm offer will be forthcoming. Invensys shareholders will be kept informed of relevant developments and a further announcement will be made as appropriate.
In accordance with Rule 2.6(a) of the Takeover Code, Schneider is required, by no later than 5:00 p.m. on 8 August 2013, to either announce a firm intention to make an offer for Invensys in accordance with Rule 2.7 of the Code or announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. The deadline can be extended with the consent of the Takeover Panel in accordance with Rule 2.6(c) of the Code and will cease to apply in the circumstances set out in Rule 2.6(b) of the Code (a firm intention to make an offer for Invensys in accordance with Rule 2.7 of the Code being announced by another offeror prior to the deadline).
Contact:
Invensys plc Steve Devany tel: +44 (0) 20 3155 1301
Annabel Michie tel: +44 (0) 20 3155 1303
FTI ConsultingAndrew Lorenz
Richard Mountain tel: +44 (0) 20 7269 7291
Forward looking statements
This announcement contains statements that are, or may be deemed to be, "forward looking statements" which are prospective in nature. These forward looking statements may be identified by the use of forward looking terminology, or the negative thereof such as "plans", "expects" or "does not expect", "is expected", "continues", "assumes", "is subject to", "budget", "scheduled", "estimates", "aims", "forecasts", "risks", "intends", "positioned", "predicts", "anticipates" or "does not anticipate", "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Forward-looking statements are not based on historical facts, but rather on current expectations, beliefs, opinions, plans, objectives, goals, intentions and projections about future events, results of operations, prospects, financial condition and discussions of strategy.
By their nature, forward looking statements involve known and unknown risks and uncertainties, many of which are beyond the Group's control. Forward looking statements are not guarantees of future performance and may and often do differ materially from actual results. Important factors that could cause these uncertainties include, but are not limited to, those discussed under the Risks and Uncertainties section of Invensys's Annual Report and Accounts 2013.
Neither the Group nor any of its affiliates or directors, officers or advisers, provides any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in this announcement will actually occur. You are cautioned not to place undue reliance on these forward-looking statements which only speak as of the date of this announcement. Forward looking statements speak only as of the date of this announcement.
Other than in accordance with its legal or regulatory obligations (including under the UK Listing Rules and the Disclosure and Transparency Rules of the Financial Conduct Authority), the Group is not under any obligation and the Group and its affiliates expressly disclaim any intention or obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise. This announcement shall not, under any circumstances, create any implication that there has been no change in the business or affairs of the Group since the date of this announcement or that the information contained herein is correct as at any time subsequent to its date.
No profit forecast or profit estimate
No statement in this announcement is intended as a profit forecast or a profit estimate and no statement in this announcement should be interpreted to mean that earnings per Invensys share for the current or future financial years would necessarily match or exceed the historical published earnings per Invensys share.
No offer or invitation or solicitation
This announcement does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for any securities. The making of this announcement does not constitute a recommendation regarding any securities.
Restatement of results for the half year ended 30 September 2012 to reflect new segmental reporting structure
H1 12/13 Restated £ million | Invensys Operations Management | Invensys Controls | Corporate | Continuing Operations | |||
Revenue | OPBIT | Revenue | OPBIT | OPBIT | Revenue | OPBIT | |
Software 1 | 120 | 32 | - | - | - | 120 | 32 |
Industrial Automation | 473 | 26 | - | - | - | 473 | 26 |
Energy Controls | 62 | 9 | 58 | 6 | - | 120 | 15 |
Appliance | - | - | 164 | 5 | - | 164 | 5 |
Corporate 2 | - | (2) | - | - | (23) | - | (25) |
Continuing Operations | 655 | 65 | 222 | 11 | (23) | 877 | 53 |
1. Software OPBIT increased by £1m to restate for add back of amortisation of intangible assets acquired and recognised through fair value accounting in accordance with the Group's accounting policy.
2. Corporate Costs increased by £5m to restate for pension administration costs as a result of the changes to the accounting standard IAS 19, Employee Benefits (Revised)
This information is provided by RNS
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