IMI Annual Report & Accounts 2014 - page 42

Down 7%
Down 19%
£284m
Operating profit
£51.9m
Revenue
Operational Review
IMI Hydronic Engineering
Engineering
GREAT
Solutions
IMI Hydronic Engineering is the leading global provider and
recognised expert in hydronic distribution systems and room
temperature control, with experience in more than 100,000
construction projects world-wide.
We help clients optimise their heating, ventilation and air
conditioning (HVAC) systems by providing products and
knowledge to deliver perfect indoor climate at minimum energy
use and at the right energy cost.
Our team of just under 2,000 people operate around the world,
and we have design and manufacturing facilities in six countries.
Performance
After adjusting for the impact of adverse exchange rate movements of £19m, revenues
were 1% lower on an organic basis. Revenues on a reported basis of £284m (2013:
£305m) were down 7%. Second half activity in many of our core European markets
was impacted by abnormally high autumn temperatures and weak construction activity.
Following our decision in early 2014 to scale back our interests in less profitable
countries and focus on those offering the best growth prospects, we delivered good
growth in the emerging markets which were up 10%. Our North American business
was down 4% reflecting a poor, weather related, first half performance.
Segmental operating profit at £52m (2013: £64m) was 19% lower on a reported basis
and, after adjusting for £3m of exchange rate impact, 15% lower on an organic basis.
This reflected the additional investment in new product development and the costs
associated with the withdrawal from a number of less profitable emerging markets.
While operating margins showed their normal second half seasonal improvement to
19.7% (2014 H1: 16.8%), full year margins at 18.3% were lower compared to last year
(2013: 21.1%).
Balancing and Control
Hydronic balancing is about controlling
water flow, which ensures that a water-
based heating or cooling system
performs to its full potential. Today
unbalanced systems are the cause of
two thirds of all indoor climate problems.
As the balancing experts IMI Hydronic
Engineering enable customers to
maintain comfort at the right level and
increase HVAC efficiency by up to 30%.
Our expertise covers all types of
hydronic systems – constant flow
and variable flow, static balancing
and dynamic balancing.
Thermostatic Control
With an unparalleled history of success
owing to our dedication to precision
and control, IMI Hydronic Engineering’s
thermostatic control systems guarantee
reliability in room temperature
control. All our thermostatic control
bodies and housings are made from
gunmetal. Resistant to corrosion and
dezincification, this tough material is
shaped using our own casting process.
The result is unmatched temperature
control and thermostatic valve quality.
Pressurisation
Changes in temperature result in
changing water volume, which have
to be dealt with immediately to avoid
damage and system breakdown. Our
reliable pressure control systems with
compressors or pumps, together with
our robust range of static expansion
vessels and water-make up devices,
make sure there is the right amount of
water, at the right pressure in the system
at all times.
Water quality
Our wide range of separators and
degassers protect the installation
and maintain system performance by
keeping water free of micro-bubbles and
sludge in heating, solar and chilled water
systems. Our latest cyclonic technology
has been proven to be up to 9 times
more efficient at removing dirt from HVAC
systems ensuring a longer life of the
installation, lower maintenance costs
as well as lower energy costs.
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IMI plc
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