Invensys Announces 2004/05 First Quarter Results For The Three Months to 30 June 2004.LONDON London, city, Canada London, city (1991 pop. 303,165), SE Ont., Canada, on the Thames River. The site was chosen in 1792 by Governor Simcoe to be the capital of Upper Canada, but York was made capital instead. London was settled in 1826. -- Invensys Invensys plc is a British engineering company, headquartered in London, England. It was formed by the merger of Siebe and BTR in 1999. The company is multinational with operations in over 60 countries, employing over 35,000 employees. plc Q1 key financial points --Sales for retained(1) businesses at GBP GBP In currencies, this is the abbreviation for the British Pound. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 611m (Q1 03/04: GBP 653m), up 1% at CER Cer goddess of violent death. [Gk. Myth.: Kravitz, 75] See : Death CER - Canonical Encoding Rules (2) --Operating profit(3) of retained businesses at GBP 16m (Q1 03/04: GBP 17m), up 14% at CER(2) --Operating margin(3) of retained businesses maintained at 2.6% after corporate costs, despite impact of under-performance from APV APV See: Adjusted Present Value --Net debt reduced by GBP 273m from 31 March to GBP 713m, and other legacy liabilities, including pension deficits, reduced by GBP 48m --Free cash outflow GBP 79m (Q1 2004: outflow GBP 210m) --Core Process Systems(4) orders up 14% at CER(2) Chief Executive of Invensys, Rick Haythornthwaite, said: "Most of our businesses are experiencing a continuing recovery in the US, together with strengthening activity in Asia, particularly China, and localised localised - localisation improvements in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). . In Process Systems, we are
both holding market share and gaining new customer relationships."Despite short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. issues in some of our businesses, we are increasingly confident that our growth and operational programmes are having the desired impact and should deliver an improving year-on-year trend in Group performance during the second half. "Overall, our expectations for the Group in the current year remain unchanged."
Financial Summary Q1 04/05 Q1 03/04 FY 03/04
GBP m GBP m GBP m
----------------------------------------------------------------------
Sales
- Retained businesses 611 653 2,728
- Continuing(1) operations 685 720 3,027
- Discontinued(5) operations 104 271 864
- Total Group 789 991 3,891
----------------------------------------------------------------------
Operating profit
- Retained businesses 16 17 193
- Continuing operations 16 7 179
- Discontinued operations (2) 8 38
- Total Group 14 15 217
----------------------------------------------------------------------
Operating exceptional items (14) (31) (236)
----------------------------------------------------------------------
Goodwill
- Goodwill amortisation (9) (18) (53)
- Goodwill impairment (27) - (25)
----------------------------------------------------------------------
Disposals(6)
- Profit/(loss) on sale/closure 168 (7) 283
- Goodwill on disposal/closure (447) (28) (419)
----------------------------------------------------------------------
Net interest payable (36) (21) (112)
----------------------------------------------------------------------
FRS 17 finance charges (4) (6) (23)
----------------------------------------------------------------------
Loss for financial period (361) (99) (328)
----------------------------------------------------------------------
(Loss)/earnings per share
- Basic (6.3)p (2.8)p (9.0)p
- Total Group before exceptional
items, goodwill amortisation
and goodwill impairment (0.6)p (0.5)p 1.2p
----------------------------------------------------------------------
Notes:
(1) Continuing operations refers to retained businesses (Process
Systems, Eurotherm, APV, Rail Systems, Climate Controls and
Appliance Controls) and businesses for sale (principally Lambda
and Baker)
(2) At constant exchange rates
(3) All references to operating profit and operating margin in this
announcement are stated before exceptional items, goodwill
amortisation and goodwill impairment
(4) Excluding IMServ
(5) Discontinued operations comprise Powerware, Hansen and Marcam in
Q1 04/05 and additionally Metering Systems, Baan & Teccor in FY
03/04
(6) Closures and disposals of businesses and sale of fixed assets
Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. This announcement contains certain statements that are forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. . These statements involve risk and uncertainty because they relate to events and depend on circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or that will occur in the future. Forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. are not guarantees of future performance. The Group's actual results of operations, financial condition and liquidity, and the development of the industries in which the Group operates, may differ materially from those made in or suggested by these statements and a number of factors could cause the results and developments to differ materially from those expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by these forward-looking statements. Operations Invensys' retained businesses achieved sales of GBP 611 million, an increase of 1% at CER, and maintained an overall operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: of 2.6% after corporate costs.
Process Systems
Q1 Q1
04/05 03/04
----------------------------------------------------------------------
Sales (GBP m) 169 169
Operating profit/(loss) (GBP m) 3 (8)
Operating margin (%) 1.8% (4.7)%
----------------------------------------------------------------------
Sales were up 9% at CER compared with Q1 last year, with growth across almost all regions but particularly China and South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. . Product sales were strong, with recently introduced products beginning to contribute significantly to revenues and a healthy uplift in the instrumentation instrumentation, in music: see orchestra and orchestration. instrumentation In technology, the development and use of precise measuring, analysis, and control equipment. business. Comparative sales in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. were impacted by the winding down of a large long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. contract. Process Systems achieved an operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. of GBP 3 million. This reversed a loss of GBP 8 million last year which included a GBP 5 million charge in respect of legacy accounting issues. The improvement in profitability was principally due to higher volumes, particularly through reinvigoration of the instrumentation business, and to increased efficiencies. These benefits more than offset the GBP 3 million costs of the current 70-week process improvement programme. In North America, opportunities in the power generation market are increasing and the upstream From the consumer to the provider. See downstream. (networking) upstream - Fewer network hops away from a backbone or hub. For example, a small ISP that connects to the Internet through a larger ISP that has their own connection to the backbone is downstream from the larger , oil and gas markets continue to improve. There are signs of economic recovery across EMEA (Europe, Middle East, Africa) Refers to that region of the world. For example, one might see products packaged differently for the UK, EMEA and Asia Pacific markets. , and upstream oil and gas remain buoyant Buoyant The term used to describe a commodities market where the prices generally rise with ease when there are considerable signals of strength. Notes: These types of markets can be very volatile as the prices are rapid to rise and fall with investor sentiment. , despite uncertainty in the Middle East. The power sector is showing considerable strength, fuelled by China's industrial expansion. As a result, orders in the core Process Systems businesses (excluding IMServ) were 14% higher at CER (up 8% including IMServ), driven by continued growth in projects in EMEA and Asia Pacific, reinforced re·in·force also re-en·force or re·en·force tr.v. re·in·forced, re·in·forc·ing, re·in·forc·es 1. To give more force or effectiveness to; strengthen: The news reinforced her hopes. by the restoration of customer confidence following the Group's refinancing Refinancing An extension and/or increase in amount of existing debt. . Major orders in the quarter included the Jiangsu Jiangsu (jyäng`s  `) or Kiangsu (kyäng`s`, jyäng`–), province (1994 est. Zhenjiang Zhenjiang (jŭn`jyäng`) or Chinkiang (chĭn`kyăng`, jĭn`jyäng`), city (1994 est. pop. 405,700), S Jiangsu prov., China, a port at the junction of the Grand Canal with the Chang River. Power Generation plant and SINOPEC, AGIP KCO KCO Keiko Yamada (Japanese pop singer)KCO Kitchener, Central Ontario (call letters) KCO Keene Chamber Orchestra (Sullivan, NH) and the Dakota Gasification Company The Dakota Gasification Company started in 1984 in Beulah, North Dakota with the Great Plains Synfuels Plant. The plant uses lignite coal to make synthetic natural gas. The synthetic natural gas is piped to the Northern Border Pipeline which supplies homes and businesses in the . Product and instrumentation orders were also strong and ArchestrA ArchestrA is Wonderware's architecture for supervisory control and manufacturing information. It is an open and extensible system of components based on a distributed, object-oriented design. sales, although still modest in the context of Process Systems, experienced a significant increase. Industry analysts ARC's upcoming report for the calendar year 2003 will show that Process Systems essentially held market share during 2003. The report does not take account of Wonderware Wonderware is a supplier of industrial automation and information software solutions, having sold more than 400,000 software licenses in over 100,000 plants worldwide. sales, which, if included, would show that we actually grew slightly against the market during the year. Historically, the performance of Process Systems has displayed a strong bias toward the second and fourth quarters. Compared with last year, management expects the trading performance for the first half of the current year to show lower variability between the first and second quarters.
Eurotherm
Q1 Q1
04/05 03/04
----------------------------------------------------------------------
Sales (GBP m) 28 29
Operating profit (GBP m) 3 4
Operating margin (%) 10.7% 13.8%
----------------------------------------------------------------------
Sales were 4% higher at CER, as increased sales in North America and Asia Pacific in particular were partially offset by lower sales in Europe. Operating profit was flat at CER. The reduction in margin from 13.8% in Q1 03/04 to 10.7% was due mainly to a change in sales mix sales mix See product mix. , with higher levels of sales in Asia Pacific and of systems, compared with last year. Operating margin was also reduced by the currency transactional impact of an increasing proportion of US dollar-denominated sales, while the majority of manufacturing continues to take place in sterling and euro-denominated regions. Eurotherm's main markets in Europe remain mixed, with France and Germany Germany (jûr`mənē), Ger. Deutschland, officially Federal Republic of Germany, republic (2005 est. pop. 82,431,000), 137,699 sq mi (356,733 sq km). weak. However, the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. recovery and strong growth in China and Korea Korea (kôrē`ə, kə–), Korean Hanguk or Choson, region and historic country (85,049 sq mi/220,277 sq km), E Asia. drove orders 9% higher at CER. The business saw a shift to higher levels of project orders in the UK and Italy Italy (ĭt`əlē), Ital. Italia, officially Italian Republic, republic (2005 est. pop. 58,103,000), 116,303 sq mi (301,225 sq km), S Europe. and an increased proportion of solutions orders overall. Eurotherm's performance typically displays little quarter-by-quarter variation.
APV
Q1 Q1
04/05 03/04
----------------------------------------------------------------------
Sales (GBP m) 82 89
Operating (loss)/profit (GBP m) (7) 5
Operating margin (%) (8.5)% 5.6%
----------------------------------------------------------------------
APV sales were 1% lower at CER, as higher sales in Asia Pacific failed to offset lower sales in North America. Sales in EMEA were down 2% at CER. APV recorded an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of GBP 7 million for the quarter. This largely reflected issues in EMEA, particularly in the projects operations, where the margin was impacted by cost overruns Noun 1. cost overrun - excess of cost over budget; "the cost overrun necessitated an additional allocation of funds in the budget" cost - the total spent for goods or services including money and time and labor , pricing pressure and volume reductions. In addition, a detailed review of operations in Europe uncovered Uncovered may refer to:
Markets in Asia Pacific remain buoyant and the Americas A·mer·i·cas , the See America. continue to recover. However, orders were 8% lower at CER, as these increases were more than offset by significantly lower order levels in EMEA. The underlying performance of APV usually displays a strong bias toward the second and fourth quarters. However, the present trends in the business and the costs of the performance improvement programme make it unlikely that APV will show an improving trend until later in the financial year.
Rail Systems
Q1 Q1
04/05 03/04
----------------------------------------------------------------------
Sales (GBP m) 104 117
Operating profit (GBP m) 13 14
Operating margin (%) 12.5% 12.0%
----------------------------------------------------------------------
Sales were 6% lower at CER, as a moderate growth in core signalling sales was more than offset by a fall in North American logistics logistics In military science, all the activities of armed-force units in support of combat units, including transport, supply, communications, and medical aid. The term, first used by Henri Jomini, Alfred Thayer Mahan, and others, was adopted by the U.S. sales following the termination The point where a line, channel or circuit ends. See SCSI termination and hybrid. of a large railroad railroad or railway, form of transportation most commonly consisting of steel rails, called tracks, on which freight cars, passenger cars, and other rolling stock are drawn by one locomotive or more. contract in Q3 03/04. Operating profit was in line with Q1 03/04 at CER, despite lower sales and the effects of substantially increased costs for bonds, insurance and UK pensions. This was due to margin improvements in specific contracts, a beneficial sales mix and tight ongoing cost control. Market conditions in the core markets of UK, Spain Spain, Span. España (āspä`nyä), officially Kingdom of Spain, constitutional monarchy (2005 est. pop. 40,341,000), 194,884 sq mi (504,750 sq km), including the Balearic and Canary islands, SW Europe. and the US remain difficult in the short term. The UK Government's rail review and the reorganisation Noun 1. reorganisation - the imposition of a new organization; organizing differently (often involving extensive and drastic changes); "a committee was appointed to oversee the reorganization of the curriculum"; "top officials were forced out in the cabinet of Network Rail are delaying the placement of contracts for large signalling renewals. In the US, orders for rail crossing renewals and transit transit, in astronomy, passage of a body across a meridian or passage of a small body across the visible disk of a larger one. (The passage of a large body across a smaller one is called an eclipse or occultation. signalling continue to be constrained con·strain tr.v. con·strained, con·strain·ing, con·strains 1. To compel by physical, moral, or circumstantial force; oblige: felt constrained to object. See Synonyms at force. 2. by the delay in the passage of the Transportation Bill due to the upcoming US presidential election. In Spain, market prospects remain strong despite a temporary slow-down in the placement of orders following the election of the new government. Excluding the London Underground The London Underground is an underground railway system - also known as a rapid transit system - that serves a large part of Greater London, United Kingdom and some neighbouring areas. It is the world's oldest underground system, and is one of the longest in terms of route length. PPP (Point-to-Point Protocol) The most popular method for transporting IP packets over a serial link between the user and the ISP. Developed in 1994 by the IETF and superseding the SLIP protocol, PPP establishes the session between the user's computer and the ISP using , order intake intake /in·take/ (in-tak´) the substances, or the quantities thereof, taken in and utilized by the body. intake, n the substance or quantities thereof taken in and used by the body. was 18% lower at CER compared with last year, which had included major orders for US transit and Spanish Spanish, river, c.150 mi (240 km) long, issuing from Spanish Lake, S Ont., Canada, NW of Sudbury, and flowing generally S through Biskotasi and Agnew lakes to Lake Huron opposite Manitoulin island. There are several hydroelectric stations on the river. mainline mainline Drug slang verb To inject a drug . A strong order book with good order cover for the current year in Dimetronic contrasts against a weakening weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. order
book in Westinghouse UK. Significant orders received in the period
include a GBP 20 million signalling contract in Indonesia Indonesia (ĭn'dənē`zhə), officially Republic of Indonesia, republic (2005 est. pop. 241,974,000), c.735,000 sq mi (1,903,650 sq km), SE Asia, in the Malay Archipelago. and smaller
orders totalling GBP 10 million for the supply of interlocking interlocking /in·ter·lock·ing/ (-lok´ing) closely joined, as by hooks or dovetails; locking into one another. interlocking Obstetrics A rare complication of vaginal delivery of twins; the 1st and train control equipment for Madrid Metro The Madrid Metro is the large metro system serving the city of Madrid. It is one of the largest metro systems in the world, which is especially remarkable considering Madrid's population of approximately 3.5 million (Madrid city) to 6 million (metropolitan area). and Barcelona Metro The Barcelona Metro (Catalan and Spanish: Metro de Barcelona), part of the mass transit public transport system of Barcelona, Catalonia, Spain is an extensive network of electrified railways that run underground in central Barcelona and above ground into the city's suburbs. . Prospects over the longer term remain positive, but the outcome of continued order delays and weakening near-term near-term adj. Of, for, or involving a short period of time in the near future. order books in the UK and US will determine trading patterns Trading pattern Long-range direction of a security or commodity futures price, charted by drawing one line connecting the highest prices the security has reached and another line connecting the lowest prices at which the security has traded over the same period. for the remainder of the year. Management actions are under way to mitigate mit·i·gate v. To moderate in force or intensity. mit  i·gation n. the effects on short-term
performance while maintaining our ability to respond to the eventual
release of orders in the UK and US markets.
Climate Controls
Q1 Q1
04/05 03/04
----------------------------------------------------------------------
Sales (GBP m) 141 159
Operating profit (GBP m) 7 12
Operating margin (%) 5.0% 7.5%
----------------------------------------------------------------------
Sales were 4% lower at CER, primarily due to the continued exit from low-margin contracting businesses in building management and to the loss of certain contracts in the prior year, when Climate Controls was still marked for disposal. Operating profit was GBP 4 million lower at CER. Improved performance in Building Management was offset by larger losses in Ranco
relating to relate prep → bezüglich +gen, mit Bezug auf +acc the prior year contract losses noted above. Margins at Ranco are expected to recover during the second half of the year, as Chinese Chinese, subfamily of the Sino-Tibetan family of languages (see Sino-Tibetan languages), which is also sometimes grouped with the Tai, or Thai, languages in a Sinitic subfamily of the Sino-Tibetan language stock. sourcing of reversing valves increases. In addition, the Residential Safety business has started to rebuild its large retail presence, lost during late FY 03/04. Market conditions remain broadly positive, with North America demonstrating strong demand for cooling products (including reversing valves), Europe showing some recovery and Asia Pacific remaining strong but highly competitive. Orders were 8% lower at CER, again mainly due to the exit from the North American contracting business, a process that is now largely complete. The product-based businesses showed good order growth in the Americas and Europe, particularly Heating and Cooling. The business historically experiences relatively weaker first and third quarters for seasonal reasons.
Appliance Controls
Q1 Q1
04/05 03/04
----------------------------------------------------------------------
Sales (GBP m) 87 90
Operating profit (GBP m) 11 11
Operating margin (%) 12.6% 12.2%
----------------------------------------------------------------------
Sales of GBP 87 million were 5% higher at CER compared with last year, due to strong growth in Europe and South America. Operating profit at GBP 11 million was up 10% at CER and operating margin improved to 12.6% (Q1 03/04: 12.2%). All regions achieved solid profit performance, despite the impact of higher material and insurance costs. Conditions in Appliance's core markets are mixed. Europe remains good, although the recovery in North American markets is showing some signs of moderating. South America continues to experience a strong increase in demand for white goods, both domestically and for export markets. In Asia Pacific, trading varies by country. Overall, orders rose 17% at CER, due to continuing higher levels of retail demand and the receipt of long-term orders in several regions. As a business that has a relatively short supply chain, Appliance A stand-alone hardware device or software environment dedicated to a specific task. See hardware appliance and software appliance. Controls is more likely to be affected by customer order patterns, although it exhibits some seasonal bias toward the second and fourth quarters.
Businesses for sale
Q1 Q1
04/05 03/04
----------------------------------------------------------------------
Sales (GBP m) 74 67
Operating profit/(loss) (GBP m) - (10)
Operating margin (%) 0.0% (14.9)%
----------------------------------------------------------------------
Trading operations principally relate to Lambda and Baker. Combined sales were up 16% at CER and the businesses achieved break-even operating performance as Lambda continued to show recovery in most regions due to general market strength for semiconductors and for factory automation plants. Baker's sales were also ahead of last year and its operating loss was reduced. The improved results also reflect the elimination of certain central overhead costs overhead costs see fixed costs. associated with the previous management structure. Since the period end, we have announced the sale of the APV Baker Goldsboro Goldsboro, city (1990 pop. 40,709), seat of Wayne co., E central N.C.; inc. 1847. Goldsboro is a marketplace for bright-leaf tobacco and a shipping center for timber. Cotton, peanuts, grain, and livestock are also produced. operation to Turkington Industries. Corporate costs Corporate costs during the quarter were GBP 14 million, down from GBP 21 million last year and stable with Q4 03/04 (GBP 14 million). This level of costs is expected to reduce further toward the end of the current year, in line with plans. Management changes During the quarter, Ulf Henriksson joined Invensys as Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. and was elected e·lect v. e·lect·ed, e·lect·ing, e·lects v.tr. 1. To select by vote for an office or for membership. 2. To pick out; select: elect an art course. to the Board by the shareholders at the Annual General Meeting in July July: see month. . Previously, Ulf held senior management positions at Eaton Corporation This article is about an industrial manufacturer. For other meanings see Eaton. Eaton Corporation (NYSE: ETN) is a diversified industrial manufacturer with 2006 sales of $12.4 billion, putting it at 198 on the Fortune 500 for 2007. , Honeywell In 1927, the Minneapolis Honeywell Regulator Company was formed as a merger of Alfred Butz' temperature control company (1885) and Mark Honeywell's water heater company (1906). In 1957, Honeywell, along with Ratheon, introduced one of the first computers in the U.S., the Datamatic 1000. and Allied Signal. Haluk Durudogan has been appointed ap·point tr.v. ap·point·ed, ap·point·ing, ap·points 1. To select or designate to fill an office or a position: appointed her the chief operating officer of the company. 2. President of APV. Haluk has held senior management positions at McDonnell Douglas McDonnell Douglas was a major American aerospace manufacturer and defense contractor, producing a number of famous commercial and military aircraft. It merged with Boeing in 1997 to form The Boeing Company. , Honeywell and, most recently, GKN GKN Guest, Keen & Nettlefolds (British global engineering company) GKN Global Knowledge Network GKN Gemeenschappelijke Kernenergiecentrale Nederland GKN Global Korean Network GKN Iks Gorkon (Star Trek novel Series) . Financial summary Sales of GBP 611 million (Q1 03/04: GBP 653 million) from retained businesses were 1% higher at CER. Group sales Group sales Block sale (of large amounts) of securities to institutional investors. group sales The distribution of a new security issue to institutional clients. at GBP 789 million (Q1 03/04: GBP 991 million) were down 20%, mainly as a result of business disposals in the prior year. In addition, weakness in both the US dollar and the euro resulted in a negative currency translation impact of GBP 58 million. Operating profit for retained businesses decreased from GBP 17 million to GBP 16 million, impacted by a negative currency translation impact of GBP 3 million. Group operating profit fell 7% to GBP 14 million (Q1 03/04: GBP 15 million). The Group has recorded a loss of GBP 361 million compared with the loss of GBP 99 million in Q1 03/04, primarily reflecting GBP 318 million of goodwill that had been previously eliminated against reserves on acquisition (Q1 03/04: GBP nil) and therefore has no impact on shareholders' funds. Basic loss per share was 6.3p (Q1 03/04: loss 2.8p). Loss per share before exceptional items, goodwill amortisation Noun 1. amortisation - the reduction of the value of an asset by prorating its cost over a period of years amortization reduction, step-down, diminution, decrease - the act of decreasing or reducing something 2. and goodwill impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. was 0.6p (Q1 03/04: loss 0.5p). Operating exceptional items, goodwill amortisation and goodwill impairment Operating exceptional items relate to costs for the restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). programme within the Group and transition costs. Restructuring costs were GBP 10 million (Q1 03/04: GBP 31 million) and transition costs were GBP 4 million (Q1 03/04: GBP nil). Restructuring costs represented 1.3% of sales for the quarter but over the course of the year are expected to rise to around 2% as indicated at the time of the full year results. Goodwill amortisation fell to GBP 9 million (Q1 03/04: GBP 18 million) reflecting the disposal of several businesses in the prior year. Following advice from a major customer that their contract with IMServ will not be renewed re·new v. re·newed, re·new·ing, re·news v.tr. 1. To make new or as if new again; restore: renewed the antique chair. 2. , a goodwill impairment charge of GBP 27 million has been recorded. This represents the remaining capitalised goodwill relating to the original Meterpoint acquisition. Corporate exceptional items The sale of non-core businesses and assets included the disposals of Powerware, Hansen Han·sen , Gerhard Henrik Armauer 1746-1845. Norwegian physician and bacteriologist who discovered (1869) the leprosy bacillus. and Marcam, a small, loss-making operation of Process Systems, and resulted in a total loss from corporate exceptional items of GBP 279 million (Q1 03/04: GBP 3 million). Gross consideration was GBP 400 million. This included gross proceeds from the sale of Powerware (GBP 307 million), Hansen (GBP 80 million) and Marcam (GBP 11 million). These transactions resulted in a profit on net assets Net assets The difference between total assets on the one hand and current liabilities and noncapitalized long-term liabilities on the other hand. net assets See owners' equity. disposed dis·pose v. dis·posed, dis·pos·ing, dis·pos·es v.tr. 1. To place or set in a particular order; arrange. 2. of GBP 166 million, settlement and curtailment Curtailment The act of contracting or reducing operations of a company in the hope of bringing it financial or operational stability. This management technique is often used when a company has grown too fast and is unable to effectively manage its operations. credits under FRS FRS abbr. Fellow of the Royal Society FRS, n “flexed rotated side-bent,” an osteopathic abbreviation used to describe vertebral position in cases of spinal dysfunction. 17 of GBP 2 million and a write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of associated goodwill of GBP 447 million (of which GBP 318 million had been previously eliminated against reserves on acquisition). Net interest expense and taxation The net interest expense for the quarter increased to GBP 36 million (Q1 03/04: GBP 21 million). The charge includes a GBP 5 million write-off of fees on the early termination of Term Loan facility A and GBP 2 million amortisation of financing fees relating to the debt refinancing completed in March 2004. The tax charge for the quarter was GBP 5 million (Q1 03/04 loss: GBP 3 million). The tax charge for the quarter is based on an allocation The apportionment or designation of an item for a specific purpose or to a particular place. In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as of the estimated tax Federal and state tax laws require a quarterly payment of estimated taxes due from corporations, trusts, estates, non-wage employees, and wage employees with income not subject to withholding. charge for the full year. No tax relief has been attributed to restructuring and corporate exceptionals. Cash flow Total free cash outflow of GBP 79 million (Q1 03/04: outflow of GBP 210 million) comprised payments totalling GBP 50 million in respect of legacy liabilities and an operating free cash outflow of GBP 29 million. The latter outflow included an adverse working capital movement of GBP 22 million, mostly due to higher levels of trade working capital (primarily further normalisation 1. (data processing) normalisation - A transformation applied uniformly to each element in a set of data so that the set has some specific statistical property. For example, monthly measurements of the rainfall in London might be normalised by dividing each one by the total of supplier payments). Net capital expenditure rose to GBP 16 million (Q1 03/04: GBP 14 million). The legacy payments included GBP 28 million of pension payments, GBP 16 million of transition costs, GBP 5 million of litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. settlements and GBP 1 million of legacy tax settlements. Net disposal proceeds for the quarter were GBP 395 million. Indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. and financing Net debt was reduced at 30 June June: see month. to GBP 713 million (31 March 2004: GBP 986 million), predominantly pre·dom·i·nant adj. 1. Having greatest ascendancy, importance, influence, authority, or force. See Synonyms at dominant. 2. due to the receipt of sale proceeds from business disposals. As at 30 June 2004, specific credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities arranged in February February: see month. and March have been cancelled can·cel v. can·celed also can·celled, can·cel·ing also can·cel·ling, can·cels also can·cels v.tr. 1. To cross out with lines or other markings. See Synonyms at erase. 2. in amounts totalling GBP 334 million, mainly following the receipt of disposal proceeds. Since the period end, the Term Loan A facility has been fully cancelled. In addition, since 30 June 2004, a tender for the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of 71/8% Notes maturing January January: see month. 2007 has been completed, resulting in the cancellation cancellation (See: cancel) CANCELLATION. Its general acceptation, is the act of crossing a writing; it is used sometimes to signify the manual operation of tearing or destroying the instrument itself. Hyde v. Hyde, 1 Eq. Cas. Abr. 409; Rob. of Notes amounting to GBP 84 million, leaving GBP 54 million outstanding. This repurchase was made from disposal proceeds. Pensions and other legacy liabilities The Group's results include a service cost charge to operating profit of GBP 13 million (Q1 03/04: GBP 12 million) and other finance charges under FRS 17 of GBP 4 million (Q1 03/04: GBP 6 million). Settlement and curtailment credits were GBP 2 million (Q1 03/04: GBP nil). Pension liabilities Pension liabilities Future liabilities resulting from pension commitments made by a corporation. Accounting for pension liabilities varies widely by country. have not been actuarially assessed at the end of June, the next valuation update being at 30 September September: see month. 2004. Since March, the pension liability has reduced by GBP 24 million, mainly as a result of contributions to the US Pension Plan. Pursuant to our agreement with the Pensions Benefit Guarantee Corporation, during the quarter we made accelerated contributions of GBP 14 million and further payments of GBP 12 million as a result of disposals. Other legacy liabilities reduced by GBP 24 million during the quarter, including GBP 16 million of planned spend against transition costs, as a number of smaller settlements were concluded and liabilities were divested with the disposal of businesses in the period. Outlook Most of our businesses are experiencing a continuing recovery in the US, together with strengthening activity in Asia, particularly China, and localised improvements in Europe. However, it is important to bear in mind that we are only three months into the financial year and macro-economic uncertainties remain. Despite issues around APV, short-term order delays in Rail Systems and materials price increases, we are increasingly confident that our growth and operational programmes are having the desired impact and should deliver an improving year-on-year trend in Group performance during the second half. Overall, our expectations for the Group in the current year remain unchanged. Notes to Editors: About Invensys Invensys is a global automation, controls and process solutions Group. Our products, services, expertise and ongoing support enable intelligent systems to monitor and control processes in many different environments. The businesses within Invensys help customers in a variety of industries - including hydrocarbons hydrocarbons (hīˈ·drō·kärˑ·b  nz),n. , chemicals, oil and gas, power and utilities, rail, construction, environmental control, white goods, telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. , paper, food and beverage F&B is a common abbreviation in the United States and Commonwealth countries, including Hong Kong. F&B is typically the widely accepted abbreviation for "Food and Beverage," which is the sector/industry that specializes in the conceptualization, the making of, and delivery of foods. , dairy dairy 1. a retail outlet for milk products. 2. the feeding and milking sheds on a dairy farm. 3. pertaining to or emanating from an animals or other thing concerned in the production of milk, e.g. dairy goat, dairy cleanser. , pharmaceuticals and personal care - to perform with greater efficiency, safety and cost-effectiveness cost-effectiveness pertaining to cost-effective. cost-effectiveness analysis a comparison of the relative cost-efficiencies of two or more ways of performing a task or achieving an objective. . Process Systems provides products, services and solutions for the automation and optimisation Noun 1. optimisation - the act of rendering optimal; "the simultaneous optimization of growth and profitability"; "in an optimization problem we seek values of the variables that lead to an optimal value of the function that is to be optimized"; "to promote the of plant operation in the process industries, such as hydrocarbons (oil and gas), chemicals, power and utilities and metals and mining. Process Systems technologies, including industry-leading brands such as Foxboro Foxboro is the name of several places:
Process Systems occupies a top-three position in the DCS (1) See also DSC. (2) Digital Cross-connect System) A network switching and grooming device used by telecom carriers. See digital cross-connect. (Distributed Control System A distributed control system (DCS) refers to a control system usually of a manufacturing system, process or any kind of dynamic system, in which the controller elements are not central in location (like the brain) but are distributed throughout the system with each component ), safety, simulation The mathematical representation of the interaction of real-world objects. See scientific application and simulator. Simulation A broad collection of methods used to study and analyze the behavior and performance of actual or theoretical systems. and HMI (Human Machine Interface) The user interface in a manufacturing or process control system. It provides a graphics-based visualization of an industrial control and monitoring system. (Human-Machine Interface - the software that represents plant information in a comprehensible com·pre·hen·si·ble adj. Readily comprehended or understood; intelligible. [Latin compreh form) markets; its products are installed in over 50,000 plants across the world. Eurotherm Eurotherm is a worldwide supplier of Control and Measurement Instrumentation to Industrial and Process Markets. They are part of Invensys plc, a leading global automation and controls company. is a leading global supplier of control, data and measurement solutions and services to industrial and process customers. Eurotherm helps many industries, including plastics, pharmaceuticals, food and beverage and glassmaking, to measure and control variables such as pressure and temperature and record vital data. Eurotherm's product range includes distributed process automation systems and machine control incorporating single and multi-loop control, operator displays, data management and graphic recorders. APV's knowledge and expertise in the food, beverage, personal care, pharmaceutical and chemical industries has made it a leading supplier of process equipment, turnkey See turnkey system. plant solutions and value-increasing services. With nearly 1,000 engineers and 700 sales personnel across 48 countries, APV delivers return on investment across the world and throughout plant life cycles. Rail Systems is a multinational multinational Of, relating to, or being a company with subsidiaries or other operations in a number of countries. The diversity of operations of such companies subjects them to unique risks (for example, exchange rate changes or government nationalization) leader in the design, manufacture, supply, installation, commissioning and maintenance of safety-related Adj. 1. safety-related - providing or ensuring safety protective - intended or adapted to afford protection of some kind; "a protective covering"; "the use of protective masks and equipment"; "protective coatings"; "kept the drunken sailor in protective custody"; rail signalling and control systems, as well as a complete range of rail signalling products. Working directly for rail authorities or with partners or contractors who provide other elements of a complete solution, Rail Systems businesses have established market-leading positions in the US, UK and Spain. Climate Controls is a leading provider of the components, systems and services used across the world to make commercial and residential buildings safer, more comfortable and more efficient. With industry-recognised names such as Ranco, Eberle Eberle is a Southern German diminutive form of the surname Eber, and may refer to: Things
Proper ventilation requires also that there be a movement or circulation of the air within the space and that the temperature and , air conditioning air conditioning, mechanical process for controlling the humidity, temperature, cleanliness, and circulation of air in buildings and rooms. Indoor air is conditioned and regulated to maintain the temperature-humidity ratio that is most comfortable and healthful. , commercial refrigeration refrigeration, process for drawing heat from substances to lower their temperature, often for purposes of preservation. Refrigeration in its modern, portable form also depends on insulating materials that are thin yet effective. and residential building alarms markets. Appliance Controls provides electronic and electro-mechanical systems and components to appliance and related industries. These include motor controls, thermostats and design software for refrigerators and freezers, washing machines (storage) washing machine - An old-style 14-inch hard disk in a floor-standing cabinet. So called because of the size of the cabinet and the "top-loading" access to the media packs - and, of course, they were always set on "spin cycle". and dishwashers, water coolers and a wide variety of other appliances used in homes and businesses. With the broadest product offering worldwide, and a history of more than 100 years of innovation, Appliance Controls helps customers to meet consumer demand for reliable, stylish Stylish is a free Mozilla extension that allows for the manipulation of web pages and XUL application user interfaces through the use of CSS or user styles available localy or from centralized web-site [1], which allows style sharing. and energy-efficient appliances. Invensys also currently owns two businesses, Lambda and Baker, which are identified for sale. Lambda is a leading producer of standard and modified mod·i·fy v. mod·i·fied, mod·i·fy·ing, mod·i·fies v.tr. 1. To change in form or character; alter. 2. power supplies for the industrial automation, test and measurement and telecommunications markets. Baker provides equipment, services and complete process solutions to the bakery, biscuit biscuit, n the firing bakes, or stages (referred to as low, medium, and high), during the fusing of dental porcelain preceding the final, or glaze, bake. biscuit in dogs, a grayish-yellow coat color. , confectionery confectionery, delicacies or sweetmeats that have sugar as a principal ingredient, combined with coloring matter and flavoring and often with fruit or nuts. In the United States it is usually called candy, in Great Britain, sweets or boiled sweets. and snack industries. The Invensys Group is listed on the London Stock Exchange London Stock Exchange London marketplace for securities. It was formed in 1773 by a group of stockbrokers who had been doing business informally in local coffeehouses. . With over 35,000 employees operating in 60 countries, Invensys helps customers to improve their performance and profitability, building value for end users and shareholders alike.
Invensys plc
For the three months ended 30 June 2004
Consolidated profit and loss account (unaudited)
Three Three
months months Year
ended ended ended
30 June 30 June 31 March
2004 2003 2004
Notes GBP m GBP m GBP m
Turnover
Continuing operations 685 720 3,027
Discontinued operations 104 271 864
1 789 991 3,891
Operating profit before exceptional
items,
goodwill amortisation and goodwill
impairment
Continuing operations 16 7 179
Discontinued operations (2) 8 38
1 14 15 217
Operating exceptional items
Restructuring costs 2 (10) (31) (76)
Transition costs 2 (4) - (98)
Refinancing costs 2 - - (14)
Fixed asset impairment 2 - - (48)
(14) (31) (236)
Operating loss before goodwill
amortisation and goodwill impairment - (16) (19)
Goodwill amortisation 1 (9) (18) (53)
Goodwill impairment 2 (27) - (25)
Total operating loss (36) (34) (97)
Continuing operations 2 (32) (24) (74)
Discontinued operations 2 (4) (10) (23)
Total operating loss 2 (36) (34) (97)
Corporate exceptional items
Costs of closure - (31) (32)
Loss on sale of fixed assets - (1) (8)
Loss on disposal of operations 3 (279) (3) (96)
Loss on ordinary activities before
interest and taxation 1 (315) (69) (233)
Net interest payable and similar
charges (36) (21) (112)
Other finance charges - FRS 17 (4) (6) (23)
Loss on ordinary activities before
taxation (355) (96) (368)
Taxation on loss on ordinary
activities 4 (5) (3) 35
Loss on ordinary activities after
taxation (360) (99) (333)
Minority interests - equity (1) - 5
Retained loss for the period (361) (99) (328)
Loss per share (basic and diluted) 5 (6.3) p (2.8) p (9.0) p
(Loss)/earnings per share (total Group
before exceptional items, goodwill
amortisation and goodwill impairment) 5 (0.6) p (0.5) p 1.2 p
Average exchange rates for the period
US$ to GBP 1 1.82 1.63 1.69
Euro to GBP 1 1.50 1.42 1.44
Yen to GBP 1 196.78 193.44 190.81
Invensys plc
At 30 June 2004
Consolidated balance sheet (unaudited)
30 June 30 June 31 March
2004 2003 2004
Notes GBP m GBP m GBP m
Fixed assets
Intangible assets - goodwill 313 715 478
Tangible assets 522 847 660
Investments in associated
undertakings 1 6 1
Other investments 16 26 16
852 1,594 1,155
Current assets
Stocks 307 492 376
Debtors: amounts falling due within
one year 923 1,065 1,043
Debtors: amounts falling due after
more than one year 37 122 38
Investments 19 31 20
Cash and short-term deposits 6 975 394 566
2,261 2,104 2,043
Creditors: amounts falling due within one
year
Short-term borrowings (77) (162) (58)
Other creditors (962) (1,321) (1,065)
(1,039) (1,483) (1,123)
Net current assets 1,222 621 920
Total assets less current liabilities 2,074 2,215 2,075
Creditors: amounts falling due after more
than one year
Long-term borrowings (1,611) (1,978) (1,494)
Other creditors (14) (21) (23)
(1,625) (1,999) (1,517)
Provisions for liabilities and charges (238) (310) (256)
Net assets/(liabilities) excluding
pension liability 211 (94) 302
Pension liability (582) (881) (606)
1 (371) (975) (304)
Capital and reserves
Called up share capital 897 875 897
Share premium account 440 15 440
Capital redemption reserve 83 83 83
Capital reserve 2,818 2,128 2,509
Profit and loss account (4,770) (4,255) (4,398)
Shareholders' deficit - equity (532) (1,154) (469)
Minority interests - including non-equity 161 179 165
(371) (975) (304)
Period end exchange rates
US$ to GBP 1 1.81 1.65 1.84
Euro to GBP 1 1.49 1.44 1.50
Yen to GBP 1 197.88 197.39 191.20
The balance sheet has been translated into sterling at appropriate
period and exchange rates
Invensys plc
For the three months ended 30 June 2004
Consolidated cash flow statement
(unaudited)
Three Three
months months Year
ended ended ended
30 June 30 June 31 March
2004 2003 2004
Notes GBP m GBP m GBP m
Net cash outflow from operating
activities 6 (50) (171) (207)
Returns on investments and servicing
of finance 6 (9) (23) (121)
Taxation 6 (13) (5) (73)
Capital expenditure and financial
investment 6 (16) (14) (115)
Acquisitions and disposals 6 377 (25) 486
Cash inflow/(outflow) before use of
liquid resources and financing 289 (238) (30)
Management of liquid resources 6 (103) (20) (43)
Financing
Issue of ordinary shares 6 - - 448
Increase/(decrease) in debt 6 103 254 (165)
Increase/(decrease) in cash in period 289 (4) 210
Reconciliation of net cash flow to
movement in net debt (unaudited)
Three Three
months months Year
ended ended ended
30 June 30 June 31 March
2004 2003 2004
Notes GBP m GBP m GBP m
Increase/(decrease) in cash in
period 289 (4) 210
Cash (inflow)/outflow from
(increase)/decrease in debt 6 (103) (254) 165
Cash outflow from increase in liquid
resources 6 103 20 43
Change in net debt resulting from cash
flows 289 (238) 418
Transfer of facility costs to
prepayments - - (25)
Exchange movements 6 (16) 48 177
Movement in net debt in period 273 (190) 570
Net debt at beginning of period 6 (986) (1,556) (1,556)
Net debt at end of period 6 (713) (1,746) (986)
Consolidated statement of total
recognised gains and losses (unaudited)
Three Three
months months Year
ended ended ended
30 June 30 June 31 March
2004 2003 2004
GBP m GBP m GBP m
Loss for the period (361) (99) (328)
Currency translation differences on
foreign currency net investments,
net of tax (21) 27 79
Actuarial gain recognised on pension
schemes - - 169
Total recognised losses in the
period (382) (72) (80)
Prior year adjustment - FRS 17 - (984) (984)
Prior year adjustment - FRS 5 - (23) (23)
Total recognised losses relating to the
period (382) (1,079) (1,087)
Reconciliation of movements in
consolidated shareholders' deficit
(unaudited)
Three Three
months months Year
ended ended ended
30 June 30 June 31 March
2004 2003 2004
GBP m GBP m GBP m
Loss for the period (361) (99) (328)
Currency translation differences on
foreign currency net investments,
net of tax (21) 27 79
Share capital issued, including
options - - 447
Unvested, restricted shares (UITF 17) 1 - 3
Actuarial gain recognised on pension
schemes - - 169
Goodwill written back on disposals and
closures 318 28 271
Net (increase)/decrease in shareholders'
deficit for the period (63) (44) 641
Opening shareholders' deficit
(previously reported) (469) (103) (103)
Prior year adjustment - FRS 17 - (984) (984)
Prior year adjustment - FRS 5 - (23) (23)
Opening shareholders' deficit
(restated) (469) (1,110) (1,110)
Closing shareholders' deficit (532) (1,154) (469)
Invensys plc
For the three months ended 30 June 2004
Notes (unaudited)
1 Segmental analysis
Operating Operating Operating
Turnover Turnover Turnover profit* profit* profit*
Q1 Q1 Yr Q1 Q1 Yr
2004/05 2003/04 2003/04 2004/05 2003/04 2003/04
GBP m GBP m GBP m GBP m GBP m GBP m
Business
Process Systems 169 169 754 3 (8) 35
Eurotherm 28 29 122 3 4 17
APV 82 89 387 (7) 5 18
Rail Systems 104 117 442 13 14 62
Climate Controls 141 159 647 7 12 73
Appliance Controls 87 90 376 11 11 54
Businesses for
sale 74 67 299 - (10) (14)
Corporate costs - - - (14) (21) (66)
Continuing
operations 685 720 3,027 16 7 179
Discontinued
operations 104 271 864 (2) 8 38
789 991 3,891 14 15 217
Operating
exceptional items (14) (31) (236)
Goodwill
amortisation (9) (18) (53)
Goodwill impairment (27) - (25)
Corporate
exceptional items (279) (35) (136)
Loss on ordinary
activities
before interest
and taxation (315) (69) (233)
Geographical
analysis by
origin
United Kingdom 112 101 442 4 8 40
Rest of Europe 183 176 787 8 11 75
North America 253 313 1,221 13 12 104
South America 15 14 62 1 - 7
Asia Pacific 108 104 462 4 (3) 16
Africa and
Middle East 14 12 53 - - 3
Corporate costs - - - (14) (21) (66)
Continuing
operations 685 720 3,027 16 7 179
Discontinued
operations 104 271 864 (2) 8 38
789 991 3,891 14 15 217
Operating
exceptional
items (14) (31) (236)
Goodwill
amortisation (9) (18) (53)
Goodwill
impairment (27) - (25)
Corporate
exceptional
items (279) (35) (136)
Loss on ordinary
activities
before interest
and taxation (315) (69) (233)
Borrowings
Cash and short-term
deposits
Deferred tax
Taxation
Goodwill
Pension liability
Net liabilities
per consolidated
balance sheet
Geographical
analysis of
turnover by
destination
United Kingdom 97 94 396
Rest of Europe 187 180 800
North America 252 300 1,167
South America 18 15 78
Asia Pacific 111 112 502
Africa and Middle
East 20 19 84
Continuing
operations 685 720 3,027
Discontinued
operations 104 271 864
789 991 3,891
* Before exceptional items, goodwill amortisation and goodwill
impairment.
Net Net Net
operating operating operating
assets assets assets
Q1 Q1 Yr
2004/05 2003/04 2003/04
GBP m GBP m GBP m
Business
Process Systems 235 264 228
Eurotherm 28 36 27
APV 93 70 80
Rail Systems 44 65 45
Climate Controls 280 352 273
Appliance Controls 182 219 173
Businesses for sale 134 124 140
Corporate costs (221) (147) (158)
Continuing operations 775 983 808
Discontinued operations - 308 189
775 1,291 997
Operating exceptional items
Goodwill amortisation
Goodwill impairment
Corporate exceptional items
Loss on ordinary activities
before interest and taxation
Geographical analysis by origin
United Kingdom 78 58 80
Rest of Europe 285 196 258
North America 341 516 338
South America 16 24 17
Asia Pacific 265 322 260
Africa and Middle East 11 14 13
Corporate costs (221) (147) (158)
Continuing operations 775 983 808
Discontinued operations - 308 189
775 1,291 997
Operating exceptional items
Goodwill amortisation
Goodwill impairment
Corporate exceptional items
Loss on ordinary activities before
interest and taxation
Borrowings (1,688) (2,140) (1,552)
Cash and short-term deposits 975 394 566
Deferred tax 5 (67) (6)
Taxation (169) (287) (181)
Goodwill 313 715 478
Pension liability (582) (881) (606)
Net liabilities per consolidated
balance sheet (371) (975) (304)
Geographical analysis of turnover by
destination
United Kingdom
Rest of Europe
North America
South America
Asia Pacific
Africa and Middle East
Continuing operations
Discontinued operations
Invensys plc
For the three months ended 30 June 2004
Notes (unaudited)
1 Segmental analysis (continued)
Geographical analysis by origin for discontinued operations
Turnover Turnover Turnover
Q1 Q1 Yr
2004/05 2003/04 2003/04
GBP m GBP m GBP m
United Kingdom 9 13 48
Rest of Europe 38 72 223
North America 40 149 452
South America 4 6 24
Asia Pacific 12 28 106
Africa and
Middle East 1 3 11
104 271 864
Operating Operating Operating
profit* profit* profit*
Q1 Q1 Yr
2004/05 2003/04 2003/04
GBP m GBP m GBP m
United Kingdom 3 10 17
Rest of Europe - (8) (10)
North America (4) 7 37
South America (1) - (7)
Asia Pacific - (1) -
Africa and
Middle East - - 1
(2) 8 38
Net Net Net
operating operating operating
assets assets assets
Q1 Q1 Yr
2004/05 2003/04 2003/04
GBP m GBP m GBP m
United Kingdom - (14) 3
Rest of Europe - 28 119
North America - 206 30
South America - 36 14
Asia Pacific - 48 21
Africa and
Middle East - 4 2
- 308 189
The analysis of turnover by destination for discontinued
operations is not materially different from the analysis of turnover
by origin shown above.
* Before exceptional items, goodwill amortisation and goodwill
impairment.
Analysis of operating exceptional items, goodwill amortisation and
net book value of goodwill
Operating Operating Operating
exceptional exceptional exceptional
items items items
Q1 Q1 Yr
2004/05 2003/04 2003/04
GBP m GBP m GBP m
Business
Process
Systems 1 3 14
Eurotherm - - 1
APV 2 2 4
Rail Systems - - 1
Climate
Controls 5 3 25
Appliance
Controls - 3 7
Businesses for
sale 2 9 14
Corporate
costs 4 3 155
Continuing
operations 14 23 221
Discontinued
operations - 8 15
14 31 236
Goodwill Goodwill Goodwill
amortisation amortisation amortisation
Q1 Q1 Yr
2004/05 2003/04 2003/04
GBP m GBP m GBP m
Business
Process Systems 3 4 14
Eurotherm 2 2 8
APV - - -
Rail Systems - - -
Climate Controls - - 2
Appliance
Controls - - -
Businesses for
sale 2 2 6
Corporate costs - - -
Continuing
operations 7 8 30
Discontinued
operations 2 10 23
9 18 53
Net book Net book Net book
value of value of value of
goodwill goodwill goodwill
Q1 Q1 Yr
2004/05 2003/04 2003/04
GBP m GBP m GBP m
Business
Process Systems 97 158 126
Eurotherm 105 119 107
APV 7 7 7
Rail Systems 1 1 1
Climate Controls 22 25 22
Appliance
Controls - - -
Businesses for
sale 81 89 84
Corporate costs - - -
Continuing
operations 313 399 347
Discontinued
operations - 316 131
313 715 478
2 Total operating loss
Continuing Continuing Continuing
operations operations operations
Q1 Q1 Yr
2004/05 2003/04 2003/04
GBP m GBP m GBP m
Turnover 685 720 3,027
Cost of sales (522) (543) (2,231)
Gross profit 163 177 796
Distribution
costs (5) (7) (24)
Administrative
costs (142) (163) (593)
Operating
profit/(loss)* 16 7 179
Operating
exceptional
items (14) (23) (221)
Goodwill
amortisation (7) (8) (30)
Goodwill
impairment (27) - (2)
Total operating
loss (32) (24) (74)
* Before exceptional items, goodwill amortisation and goodwill
impairment.
Discontinued Discontinued Discontinued
operations operations operations
Q1 Q1 Yr
2004/05 2003/04 2003/04
GBP m GBP m GBP m
Turnover 104 271 864
Cost of sales (82) (202) (658)
Gross profit 22 69 206
Distribution
costs (1) (1) (5)
Administrative
costs (23) (60) (163)
Operating
profit/(loss)* (2) 8 38
Operating
exceptional
items - (8) (15)
Goodwill
amortisation (2) (10) (23)
Goodwill
impairment - - (23)
Total operating
loss (4) (10) (23)
* Before exceptional items, goodwill amortisation and goodwill
impairment.
Total Total Total
Q1 Q1 Yr
2004/05 2003/04 2003/04
GBP m GBP m GBP m
Turnover 789 991 3,891
Cost of sales (604) (745) (2,889)
Gross profit 185 246 1,002
Distribution
costs (6) (8) (29)
Administrative
costs (165) (223) (756)
Operating
profit/(loss)* 14 15 217
Operating
exceptional
items (14) (31) (236)
Goodwill
amortisation (9) (18) (53)
Goodwill
impairment (27) - (25)
Total operating
loss (36) (34) (97)
* Before exceptional items, goodwill amortisation and goodwill
impairment.
The total restructuring costs of GBP 10 million (Q1 2003/04:GBP 31
million; Yr 2003/04: GBP 76 million) together with transition costs of
GBP 4 million (Q1 2003/04:GBP nil; Yr 2003/04:GBP 98 million) and
refinancing costs of GBP nil (Q1 2003/04:GBP nil; Yr 2003/04:GBP 14
million), goodwill amortisation ofGBP 9 million (Q1 2003/04:GBP 18
million; Yr 2003/04:GBP 53 million) plus goodwill impairment of GBP 27
million (Q1 2003/04:GBP nil; Yr 2003/04:GBP 25 million) and fixed
asset impairment of GBP nil (Q1 2003/04:GBP nil; Yr 2003/04:GBP 48
million) are classified as administrative costs, which therefore total
GBP 215 million (Q1 2003/04:GBP 272 million; Yr 2003/04:GBP 1,070
million).
Goodwill impairment of GBP 27 million (Q1 2003/04:GBP nil; Yr
2003/04:GBP 25 million) relates wholly to the Process Systems
business.
Invensys plc
For the three months ended 30 June 2004
Notes (unaudited)
3 Loss on disposal of operations
The Group has recorded corporate exceptional items in relation to
the loss on disposal of operations of GBP 279 million (Q1 2003/04: GBP
3 million; Yr 2003/04: GBP 96 million). This comprises a profit on
assets divested of GBP 166 million (Q1 2003/04: loss of GBP 3 million;
Yr 2003/04: GBP 286 million), a charge of associated goodwill of GBP
447 million (Q1 2003/04: GBP nil; Yr 2003/04: GBP 391 million), and a
GBP 2 million credit in relation to settlements and curtailments on
pension schemes (Q1 2003/04: GBP nil; Yr 2003/04: GBP 9 million).
4 Taxation on loss on
ordinary activities Three Three
months months Year
ended ended ended
30 June 30 June 31 March
2004 2003 2004
GBP m GBP m GBP m
Taxation on ordinary activities (5) (5) (41)
Adjustments in respect of prior years - - 65
Deferred tax - 2 12
Tax on corporate exceptionals - - (1)
(5) (3) 35
5 (Loss)/earnings per share
Three Three
months months Year
ended ended ended
30 June 30 June 31 March
2004 2003 2004
(Loss)/earnings per share
(pence)
Basic (6.3) p (2.8) p (9.0) p
Total Group* (0.6) p (0.5) p 1.2 p
Diluted (6.3) p (2.8) p (9.0) p
Average number of shares
(million)
Basic 5,687 3,500 3,661
(Loss)/earnings (GBP m)
Basic (361) (99) (328)
Total Group
Operating
profit* 14 15 217
Net interest
payable (36) (21) (112)
Other finance
charges -
FRS 17 (4) (6) (23)
Operating
profit less
finance costs (26) (12) 82
Tax on
operating
profit less
finance
costs (5) (5) (44)
Minority
interests (1) - 5
(32) (17 ) 43
* Before exceptional items, goodwill amortisation and goodwill
impairment.
The basic loss per share has been calculated using 5,687 million
shares (Q1 2003/04: 3,500 million; Yr 2003/04: 3,661 million), being
the weighted average number of shares in issue during the year and the
loss after taxation and minority interests of GBP 361 million (Q1
2003/04:GBP 99 million; Yr 2003/04:GBP 328 million).
Loss/earnings per share is also calculated by reference to
earnings for the total Group, before exceptional items, goodwill
amortisation and goodwill impairment with an underlying tax charge of
GBP 5 million (Q1 2003/04: GBP 5 million: Yr 2003/04: GBP 44 million),
since the directors consider that this gives a useful additional
indication of underlying performance.
The diluted loss per share has been calculated in accordance with
Financial Reporting Standard No 14: Earnings per share (FRS 14)
without reference to adjustments in respect of certain share options
which are considered to be anti-dilutive.
Invensys plc
For the three months ended 30 June 2004
Notes (unaudited)
6 Cash flow statement
Three Three
months months Year
ended ended ended
30 June 30 June 31 March
2004 2003 2004
GBP m GBP m GBP m
Reconciliation of operating loss before
interest and tax to net cash outflow
from operating activities
Total operating loss (36) (34) (97)
Depreciation charge 22 31 110
Provision for impairment charged to
operating profit 27 - 73
Amortisation of goodwill 9 18 53
Cash costs of closures - (3) (3)
(Increase)/decrease in stocks (15) (12) 10
Decrease/(increase) in debtors 7 (49) (179)
Decrease in creditors and provisions (36) (127) (43)
Movement in pensions (28) 5 (131)
Net cash outflow from operating
activities (50) (171) (207)
Analysis of cash flows for headings
netted in the cash flow statement
Returns on investments and servicing of
finance
Interest received 3 5 13
Interest paid (12) (28) (132)
Dividends paid to minority interests - - (2)
Net cash outflow for returns on
investments and servicing of finance (9) (23) (121)
Taxation
UK corporation tax paid - (1) (9)
Overseas tax paid (13) (4) (64)
Net cash outflow for tax paid (13) (5) (73)
Capital expenditure and financial
investment
Purchase of tangible fixed assets (16) (17) (126)
Sale of tangible fixed assets - 1 4
Sale of trade investments - 2 7
Net cash outflow for capital expenditure
and financial investment (16) (14) (115)
Acquisitions and disposals
Purchase of subsidiary undertakings - - (2)
Sale of subsidiary undertakings* 395 (25) 497
Net cash disposed of on sale of subsidiary
undertakings (18) - (10)
Sale of associated undertakings - - 2
Purchase of minority interests - - (1)
Net cash inflow/(outflow) for
acquisitions and disposals 377 (25) 486
Management of liquid resources
Short-term deposits made (103) (20) (43)
Net cash outflow from management of
liquid resources (103) (20) (43)
Financing
Issue of ordinary share capital - - 470
Share issue expenses - - (22)
Cash inflow from issue of ordinary
shares - - 448
Debt due within one year
Increase in short-term borrowings 2 73 231
Repayment of short-term borrowings - (62) (322)
Debt due beyond one year
Increase in long-term borrowings 101 243 1,215
Repayment of long-term borrowings - - (1,288)
Capital element of finance lease
repayments - - (1)
103 254 (165)
Net cash inflow from financing 103 254 283
* In the three months ended 30 June 2004, the disposal proceeds
received comprised cash of GBP411 million less GBP 16 million of other
directly related cash costs, including advisor and professional fees.
Invensys plc
For the three months ended 30 June 2004
Notes (unaudited)
6 Cash flow statement (continued)
Analysis of changes to net debt
At At
1 April Cash Exchange 30 June
2004 flow movement 2004
GBP m GBP m GBP m GBP m
Cash at bank and in hand 409 306 2 717
Overdrafts (4) (17) (21)
289
Debt due within one year (53) (2) - (55)
Debt due after one year (1,492) (101) (16) (1,609)
Finance leases (3) - - (3)
(103)
Short-term deposits 157 103 (2) 258
Total (986) 289 (16) (713)
Cash at bank and in hand 409 717
Short-term deposits 157 258
Cash and short-term deposits 566 975
7 Financial statements
This unaudited results statement was approved by a duly appointed
and authorised committee of the Board of Directors on 25 August 2004.
This statement does not comprise the statutory accounts of the Group,
as defined in section 240 of the Companies Act 1985.
The financial information for the three months ended 30 June 2004
has been prepared on the same basis of accounting as for the year
ended 31 March 2004. The financial information is unaudited. The
statutory accounts of Invensys plc for the year ended 31 March 2004
have been delivered to the Registrar of Companies. The auditors, Ernst
& Young LLP, reported on those accounts and their report was
unqualified and did not contain a statement under section 237(2) or
(3) of the Companies Act 1985.
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion