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Invesnsys H1 results
Process automation, rail signalling equipment and controls manufacturer Invensys reported first half results showing revenue down 13% at CER. Even worse, orders, a leading indicator of sales, were down 18% at CER.
Although the company highlights two large orders that have been announced since the end of the half year, more than a month has passed, given the lumpiness of revenues that depend on large orders, it is difficult to regard this is a strong signal of coming improvement.
Operating profit fell 15% at CER, and Adjusted EPS more than halved to 4.9p.
The 1p interim dividend was not huge, but given that last year no interim dividend was paid and the final dividend was just 1.5p, it is encouraging. The trailing twelve months months declared dividends (an unusual measure, but one that makes sense in the circumstances) give us a yield of only 1% (at the current price of 282p), but the real importance of it is that the company has demonstrated some confidence by resuming dividend payments at all.
Invensys expects improved performance for the full year, but so far today the market has shown disappointment with the share price falling 5.7%.
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