Final Results
Business highlights
· Disposal of Invensys Rail for £1,742 million was completed on 2 May 2013
- Agreements with Trustee of UK Pension Scheme implemented with contributions of £400 million to UK Pension Scheme and £225 million to a reservoir trust; no further contributions are expected to be made for the foreseeable future
- Subject to shareholder approval, return of £625 million of cash to shareholders (amounting to around 76 pence per share) to be implemented as soon as practicable
· Invensys is now a focused supplier of industrial software, systems and control equipment, delivering state-of-the-art technologies to the world's major industries
· Reorganisation of Group underway including the elimination of former divisional headquarters resulting in savings in overheads of £25 million per annum by April 2014
· Improved transparency going forward with four new business segments - Software, Industrial Automation, Energy Controls and Appliance
Financial highlights for continuing operations2
· Order intake was £1,700 million (2012: £1,759 million), down 3% (down 2% at CER3); 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
· Revenue was £1,792 million (2012: £1,764 million), up 2% (up 3% at CER), driven by order book conversion at Invensys Operations Management more than offsetting the decline at Invensys Controls
· Operating profit4 rebounded to £131 million (2012: £93 million), up 41% (up 40% at CER) with our China Nuclear contracts stabilised
· Underlying earnings per share5 were 8.5p (2012: 5.3p), up 60%
· Operating cash flow was £136 million (2012: £124 million) and operating cash conversion was 104% (2012: 133%); net cash at year end (before receipt of Invensys Rail disposal proceeds) was £268 million (2012: £262 million)
· Recommended final dividend6 of 2.85p per share (2012: 2.75p per share); total dividends for the year of 4.6p per share (2012: 4.4p per share), an increase of 5%