26 July 2024

Continued strategic progress, organic revenue and profit growth

10% dividend increase and £100m share buyback announced

Full year adjusted EPS guidance reconfirmed

 

Interim results, six months ended 30 June 2024

 

	Adjusted1				Statutory
	H1 2024	H1 2023	Change	Organic3	H1 2024	H1 2023	Change
Revenue	£1,098m	£1,084m	+1%	+5%	£1,098m	£1,084m	+1%
Operating profit	£196m	£193m	+2%	+6%	£177m	£149m	+19%
Operating margin	17.9%	17.8%	+10bps		16.1%	13.7%	+240bps
Profit before tax	£187m	£180m	+4%		£163m	£139m	+17%
Basic EPS	54.7p	54.0p	+1%		48.2p	42.2p	+14%
Operating cash flow2	£130m	£145m	-11%		£170m	£174m	-2%
Dividend per share	10.0p	9.1p	+10%		10.0p	9.1p	+10%

^{1 Excluding the effect of adjusting items as reported in the income statement. See Note 2 for definitions of alternative performance measures.}

^{2 Adjusted operating cash flow, as described in Note 2 to the financial statements. Statutory measure is Cash generated from operations as shown on the cash flow statement.}

^{3 After adjusting for acquisitions, disposals and exchange rates (see Note 3).}

Key points

 

·	5% organic sales growth
·	6% organic adjusted operating profit growth
·	Adjusted operating margin 10bps higher than H1 2023
·	Statutory operating profit up 19%
·	Statutory profit before tax up 17%
·	Complexity reduction programme delivered £4m benefits in H1
·	Proposed interim dividend of 10.0p, increased by 10%
·	£100m share buyback announced

 

Roy Twite, Chief Executive Officer, said:

"We continue to make good progress delivering our purpose-led strategy, Breakthrough engineering for a better world. First half performance was in line with expectations, and we were pleased to deliver 5% organic sales growth and 6% organic adjusted operating profit growth, despite mixed end markets.  In line with our disciplined approach to capital allocation, we are today announcing a £100m share buyback programme and a 10% increase to the interim dividend.

Based on current market conditions, we continue to expect that full year adjusted basic earnings per share will be between 120p to 126p.

After nearly 10 years with IMI, Daniel Shook, Group CFO has decided for family reasons to step down from the IMI plc Board in 2025. Dan has been a fantastic partner to me over the last five years. I will really miss him when he does eventually leave, but between now and then, there will be many opportunities for me to thank him for his incredible contribution. We will now be starting a process to find his successor.

We are also pleased to announce the appointment of Jackie Hu as Chief Operating Officer, reporting into me and driving the growth of all five sectors."

Enquiries to:
Luke Grant	IMI	Tel: +44 (0)7866 148 374
Matt Denham	Headland	Tel: +44 (0)7551 825 496

 

A live webcast of the analyst meeting taking place today at 8:00am (BST) will be available on the investor page of the Group's website: www.imiplc.com. The Group plans to release its next Interim Management Statement on 7 November 2024.

Results overview

Strong organic growth and margin improvement

 

IMI delivered another good financial performance in the first half despite mixed end markets. Organic revenue increased by 5% and organic adjusted operating profit increased by 6%. First half adjusted operating margins increased by 10bps.

 

This performance reflects the continued delivery of our better world strategy. We are accelerating performance by focusing on helping our customers become safer, more sustainable and more productive. Our sectors are in attractive growth markets supported by long-term global macro-economic trends. Around 45% of sales are generated from the aftermarket.

 

£m	Adjusted1				Statutory
	H1 2024	H1 2023	Change	Organic2	H1 2024	H1 2023	Change
Revenue
Process Automation	422	366	+15%	+19%	422	366	+15%
Industrial Automation	262	283	-7%	-4%	262	283	-7%
Automation	684	649	+5%	+9%	684	649	+5%
Climate Control	196	201	-2%	+1%	196	201	-2%
Life Science & Fluid Control	123	147	-16%	-13%	123	147	-16%
Transport	95	87	+9%	+13%	95	87	+9%
Life Technology	414	435	-5%	-1%	414	435	-5%
Total Revenue	1,098	1,084	+1%	+5%	1,098	1,084	+1%
Operating profit
Automation	126	113	+12%	+17%	113	88	+28%
Life Technology	70	80	-12%	-10%	64	61	+5%
Total Operating Profit	196	193	+2%	+6%	177	149	+19%
Operating margin	17.9%	17.8%	+10bps		16.1%	13.7%	+240bps

 

^{1 Excluding the effect of adjusting items as reported in the income statement. See Note 2 for definitions of alternative performance measures.}

^{2 After adjusting for acquisitions, disposals and exchange rates (see Note 3).}

 

Dividend

The Board is recommending a 2024 interim dividend of 10.0p per share (2023: 9.1p per share). Payment will be made on 16 September 2024 to shareholders on the register at the close of business on 9 August 2024.

 

The last date to elect for the Dividend Reinvestment Plan ('DRIP') is 23 August 2024. The IMI DRIP is provided by Equiniti Financial Services Limited. The DRIP enables the Company's shareholders to elect to have their cash dividend payments used to purchase the Company's shares. More information can be found at www.shareview.co.uk/info/drip.

 

Share buyback

 

Reflecting the strong trading result, projections for the full year and our commitment to maintaining an efficient balance sheet, we are today announcing a £100m share buyback programme.

 

Board and Executive Committee changes

 

Daniel Shook has informed the Board of his decision to step down as Chief Financial Officer and Executive Director of the Company for family reasons. The Board has initiated a search for a successor and will provide an update when this process has concluded. Daniel will continue to perform his duties and fully support the Board and executive team in executing the Company's strategy during this period of transition.

 

Jackie Hu is appointed Chief Operating Officer (COO). This is a new role with responsibility for all five sectors. Jackie will continue reporting to Roy and remain as an Executive Committee member.

 

On 10 June, Beth Ferreira, CEO Life Technology and a member of the Executive Committee, stepped down from her role and will be leaving the business at the end of her notice period. Roy Twite, Chief Executive of IMI, commented "On behalf of the Board and the Executive Committee I would like to thank Beth for all her hard work and support since she joined IMI nearly four years ago".

 

Outlook

 

Based on current market conditions, we continue to expect that full year adjusted basic earnings per share will be between 120p to 126p.

 

Our guidance assumes that the weighted average number of shares will reduce to 259m at the year end, with the accretive impact of our share buyback programme largely offset by an increase in interest expense. The foreign exchange translation impact is now expected to lead to a full year headwind of around 3%.

 

Platform results

 

Automation

Automation specialises in the design and manufacture of motion and fluid control solutions that enable a diverse range of industries, to operate more efficiently, safely and sustainably. Our Process Automation sector supports vital process and energy industries whilst Industrial Automation helps create the smart, safe and sustainable factories, production lines and warehouse operations.

 

£m	Adjusted1				Statutory
	H1 2024	H1 2023	Change	Organic2	H1 2024	H1 2023	Change
Revenue
Process Automation	422	366	+15%	+19%	422	366	+15%
Industrial Automation	262	283	-7%	-4%	262	283	-7%
Total Revenue	684	649	+5%	+9%	684	649	+5%
Operating profit	126	113	+12%	+17%	113	88	+28%
Operating margin	18.4%	17.4%	+100bps		16.5%	13.5%	+300bps

 

^{1 Excluding the effect of adjusting items as reported in the income statement. See Note 2 for definitions of alternative performance measures.}

^{2 After adjusting for acquisitions, disposals and exchange rates (see Note 3).}

 

Process Automation (£m)	H1 2024	H1 2023	Change	Organic1
Closing order book	858	774	+11%
Order intake:
Aftermarket	308	296	+4%	+8%
New Construction	230	213	+8%	+10%
Total order intake	538	509	+6%	+9%

 

^{1 After adjusting for acquisitions, disposals and exchange rates (see Note 3).}

 

Automation delivered strong organic revenue growth of 9%, with revenue up 5% on a statutory basis.

 

Process Automation had an excellent first half, with strong order intake and continued organic growth. Orders were up 9% organically, including a significant £33m order in our Marine business which covers deliveries over several years. Aftermarket orders increased by 8% organically as we continue to benefit from our investment in this space. In addition to the large Marine order we have seen particular strength in LNG Aftermarket, Hydrogen and Upstream Oil & Gas. Organic revenue was 19% higher than the first half of 2023 and 15% higher on a statutory basis. The Process Automation order book at the end of June was 11% higher than the previous period.

 

Industrial Automation organic revenue was 4% lower than the same period in the prior year, in line with softer industrial activity in Europe and the Americas. Statutory revenue was 7% lower.

 

Adjusted operating profit for the platform increased by 17% on an organic basis and the adjusted operating margin improved by 100bps to 18.4%. This was a strong performance, reflecting our continued strength in higher-margin Aftermarket opportunities and the successful execution of footprint optimisation initiatives, which delivered £4m of incremental benefits in the first half. Statutory operating profit increased by 28% to £113m in the period.

 

 

Life Technology

 

Life Technology develops motion and flow control solutions that enhance and improve the quality of life across three key sectors. Climate Control's innovative solutions help customers optimise heating and cooling systems, reduce energy consumption and improve building comfort. Life Science & Fluid Control develops solutions that empower our Life Science customers to enhance patient-focused critical care and diagnose disease earlier, and our Fluid Control customers to accelerate the safety, reliability and performance of everyday activities. Transport is at the heart of advancing commercial vehicles and our cutting-edge technology helps manufacturers radically reduce emissions and improve vehicle safety.

 

£m	Adjusted1				Statutory
	H1 2024	H1 2023	Change	Organic2	H1 2024	H1 2023	Change
Revenue
Climate Control	196	201	-2%	+1%	196	201	-2%
Life Science & Fluid Control	123	147	-16%	-13%	123	147	-16%
Transport	95	87	+9%	+13%	95	87	+9%
Total Revenue	414	435	-5%	-1%	414	435	-5%
Operating profit	70	80	-12%	-10%	64	61	+5%
Operating margin	17.0%	18.4%	-140bps		15.5%	14.0%	+150bps

 

^{1 Excluding the effect of adjusting items as reported in the income statement. See Note 2 for definitions of alternative performance measures.}

^{2 After adjusting for acquisitions, disposals and exchange rates (see Note 3).}

 

As expected, Life Technology revenue was down 1% organically in the first half, and down 5% on a statutory basis.

 

Climate Control delivered a resilient performance, despite uncertain markets and a strong comparator. Organic revenue was 1% higher than the prior period and 2% lower on a statutory basis.  Whilst trends in the European construction market did impact sales in the first half, underlying demand for our energy efficiency products remains strong.

 

Life Science & Fluid Control organic revenue was 13% lower than the prior period and 16% lower on a statutory basis. This was as expected given the strong prior period comparator, particularly in the first quarter, and the continued softness seen across the global life sciences device market. The long-term fundamentals of this sector are strong, and we remain excited about our opportunities for innovation and growth in this sector.

 

Transport revenue was up 13% organically and 9% higher on a statutory basis. We continue to benefit from strong growth in Asia and our new product launches, supported by favourable regulatory tailwinds.

 

Adjusted operating margin for the first half reduced by 140bps to 17.0%, largely reflecting the sales reduction and changes in mix between sectors. The platform continues to advance complexity reduction initiatives with benefits expected in the second half. Statutory operating profit increased by 5% to £64m in the period.

 

Environmental, Social and Governance (ESG)

 

Our purpose, Breakthrough engineering for a better world, continues to focus our actions and create real energy across our organisation.

Empowering people

Ensuring all our employees feel safe at work has always been our number one priority. The number of health and safety incidents reduced by 31% during the first half and whilst this is excellent progress, we remain committed to the ambition of an accident-free workplace.

 

Our Inclusion and Diversity activities are helping us build a more dynamic and innovative organisation. We have a target of 25% of women in management across the Group and in 2023 we were at 22% with 44% female representation on our Board. We will continue to focus on female representation at every career level; from graduate through to leadership roles, to improve our overall gender diversity.

 

Our continued focus on empowering people and on creating an inclusive, diverse, and safe workplace is being recognised. We were pleased to see employee engagement increase in our recent 2024 survey, with 79% of employees now seeing IMI as a great place to work (2023: 77%).

 

Sustainable solutions

 

IMI's solutions support our customers' products and operations and often directly contribute to the delivery of their carbon reduction targets. When considering investments, we ensure that the impact on IMI's overall ESG positioning and performance is a prime consideration.

IMI sees a natural link between pursuing our ESG objectives with vigour and our wider ambitions for improved growth and profitability. Many of our best growth opportunities involve supporting customers in developing solutions for a zero-carbon future.

In particular, we are developing solutions for many aspects of the hydrogen value chain, including electrolysis, liquid storage, refuelling and heavy-duty trucks. We delivered £22m of hydrogen-related orders in the first half (H1 2023: £3m).

Climate action

At IMI we are committed to minimising our impact on the environment and we are pleased to announce that in July 2024 we received approval for both our near-term and net-zero targets from the Science Based Targets initiative (SBTi). This follows our commitment to submit targets to SBTi in May 2023, which includes the following:

·      to reduce absolute scope 1 and 2 greenhouse gas emissions by 67.2% by 2030 from a 2019 base year and to achieve net-zero by 2040; and

·      to reduce absolute scope 3 greenhouse gas emissions by 25% by 2030 from a 2021 base year and a commitment to reach net-zero greenhouse gas emissions across the value chain by 2050.

Our CO₂ intensity metric continued to improve in the first half and both platforms are progressing actions that will further reduce our Scope 1, 2 and 3 emissions. We remain on track to deliver our longer-term commitments, in line with the SBTi criteria.

More information about our ESG credentials and initiatives, including our policies and practices, can be found on our website: www.imiplc.com.

Financial review

Strong first half performance

 

The Group delivered a strong financial result in the first half, as revenue, profit and adjusted operating margin improved. Revenue increased by 1% to £1,098m (2023: £1,084m). Organic revenue was 5% higher than the prior year, after adjusting for acquisitions, disposals and exchange rate movements.

 

Adjusted operating profit of £196m (2023: £193m) was 2% higher than the prior period. On an organic basis, adjusted operating profit increased by 6%. Group adjusted operating margin increased by 10bps to 17.9% (2023: 17.8%). Statutory operating profit was up 19% at £177m (2023: £149m).

 

Adjusted net financing costs on borrowings, including the impact of interest cost on leases, were £7.8m (2023: £12.0m) and were covered 31 times by adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of £243m (2023: £239m). The IAS19 pension net financial expense was £0.9m (2023: £0.7m). The total adjusted net financial expense was £8.7m (2023: £12.7m), principally reflecting a reduction in borrowing.

 

Profit before tax and adjusting items was £187m, an increase of 4% (2023: £180m).

 

The adjusted Group effective tax rate on profit for the first half increased to 24.0% (2023: 22.3%), largely reflecting higher UK corporation tax rates, the global minimum corporate income tax rate of 15% and favourable resolution of a number of historic tax cases in 2023.

 

Statutory profit before tax was £163m (2023: £139m). The total statutory profit for the period after taxation was £125m (2023: £109m).

 

Adjusting items

Restructuring costs of £11m were incurred in the first half (2023: £24m). Further details on these projects are included in Note 2.

 

The impact of amortisation of acquired intangibles and other acquisition costs was £14m (2023: £18m). The reversal of net economic hedge contract gains and losses resulted in a £6m charge (2023: £1m charge).

 

A £6m gain was recognised on the disposal of Industrie Mécanique pour les Fluides SA. Further details on this disposal are included in Note 14.

 

The tax effect of the above adjusting items was a credit of £8m (2023: £11m).

 

 

Complexity reduction continues to deliver benefits

 

Both platforms advanced their multi-year restructuring programmes in the first half, recognising a total charge of £11m.

The restructuring programme contributed £4m of benefits in the first half and is on track to deliver £15m for the full year, with a further £7m benefits expected in 2025.

We continue to expect that the programme will complete this year, although the Group will always seek and execute on opportunities that improve its competitive position.

 

Adjusted basic earnings per share

 

The average number of shares in issue during the period was 260m (2023: 259m), resulting in adjusted basic earnings per share of 54.7p (2023: 54.0p), an increase of 1%. Statutory basic earnings per share increased by 14% to 48.2p (2023: 42.2p) and statutory diluted earnings per share increased by 14% to 48.0p (2023: 42.1p).

 

Disposals

 

On 25 April 2024 the Group disposed of Industrie Mécanique pour les Fluides SA for proceeds of £18.5m resulting in a gain on disposal of £6.3m. Further details are provided in Note 14.

 

Foreign exchange

 

The impacts of translation on the reported growth of first half revenue and adjusted operating profit was a decrease of £30m and decrease of £7m respectively. The most significant foreign currencies for the Group remain the Euro and the US Dollar and the relevant rates of exchange for the period and at the period end are shown in Note 13 to this report. If exchange rates as at 19 July 2024 of US$1.29 and €1.19 remained constant for the remainder of the year, it would negatively impact both revenue and adjusted operating profit by approximately 3% in the year when compared to 2023.

 

Maintaining cash discipline

 

Cash generated from operations decreased to £170m (2023: £174m). Adjusted operating cash flow (see definition in Note 2) decreased to £130m (2023: £145m), largely reflective of continued business investment and additional working capital to support organic growth. Trade and other receivables increased by £63m, inventories increased by £50m and trade and other payables increased by £50m. Capital expenditure amounted to £41m (2023: £36m) and was 1.3 times (2023: 1.2 times) the adjusted depreciation and amortisation charge for the period of £33m (2023: £31m), which excludes depreciation from the IFRS 16 right of use assets of £14m (2023: £15m).

 

The other major cash outflows in the period were dividends to shareholders of £50m, a £17m outflow for adjusting items primarily related to the Group's restructuring programme, and £46m of tax.

 

The total adjusted cash inflow for the period, excluding the impact of foreign exchange and movement of lease liabilities, was £34m, compared with an inflow of £28m in the first half of the previous year.

Definitions of adjusted performance measures are included in Note 2 and a reconciliation of adjusted

measures to statutory measures is included in Note 11.

 

Strong balance sheet offers strategic flexibility

 

The Group maintains an appropriate mixture of cash and short, medium and long-term debt arrangements which provide sufficient liquidity for both ongoing activities and acquisitions. Total committed bank loan facilities available to the Group at 30 June 2024 were £300m (December 2023: £300m), of which £nil (December 2023: £nil) was drawn.

The ratio of net debt to the last twelve months' EBITDA (before adjusting items) is a funding covenant that is currently limited to 3.0x and was 1.2x at the end of June 2024 (December 2023: 1.3x).

The trade and other receivables asset increased to £571m as at 30 June 2024 (December 2023: £524m). Inventory increased to £477m at 30 June 2024 (December 2023: £437m), largely reflecting investments to support the order book growth in Process Automation. The trade and other payables liability increased to £505m at 30 June 2023 (December 2023: £470m).

The net deficit for defined benefit obligations at 30 June 2024 was £46m (December 2023: £49m). The UK deficit was £5m (December 2023: £4m) with the liabilities now fully bought-in. The deficit in the overseas funds as at 30 June 2024 was £41m (31 December 2023: £45m).

Shareholders' equity at the end of June was £1,094m, an increase of £64m since the end of last year. This is largely attributable to the profit for the period of £125m, the after-tax impact of share-based payments of £5m, shares acquired for the employee share scheme trust of £2m and after-tax actuarial income on the defined benefit pension plans of £1m; offset by unfavourable exchange differences and related tax of £19m and dividends paid of £50m.

 

Other regulatory information

 

Going concern

After making enquiries, the directors have a reasonable expectation that IMI plc ('the Company') and the Group have adequate resources to continue in operational existence for the foreseeable future and for a period of at least twelve months following the approval of the Interim Financial Report. Accordingly, they continue to adopt the going concern basis. See Note 1 for further information on the directors' considerations in reaching this conclusion.

The directors have considered the current macroeconomic conditions on the Group's financial results and financial position. The directors have assessed the viability of the Group and reviewed detailed cash flow forecast scenarios, including comparing a reverse stress test to those detailed forecasts. The directors have a reasonable expectation that the financial headroom will not be exhausted during the twelve months following the date of approval of the Interim Financial Report.

Principal risks and uncertainties

The Group has a risk management structure and internal controls in place which are designed to identify, manage and mitigate business risk. IMI faces a number of risks and uncertainties which could have a material impact on the Group's long-term performance.

On pages 91 to 99 of its 2023 Annual Report (a copy of which is available on IMI's website: www.imiplc.com), the Company sets out what the directors regarded as being the principal risks and uncertainties facing the Group and which could have a material impact on the Group's long-term performance. These risks include global economic uncertainty and political instability, lack of organic growth, talent and culture, cyber, competitive markets, supply chain risks, natural phenomena and climate change, major transformational project delivery risk, ethics, compliance and governance, product quality issues, acquisition risk and leveraging digital including artificial intelligence. Having considered the current environment, the directors have considered that these risks remain valid and have the potential to impact the Group during the second half of 2024. The impact of the macro-economic and end-market environments in which the Group's businesses operate have been considered in making the comments in the platform review and outlook sections of this Interim Financial Report.

Safe harbour statement

This Interim Financial Report contains forward-looking statements with respect to the operations, performance and financial condition of the Group. By their nature, these statements involve uncertainty since future events and circumstances can cause results and developments to differ materially from those anticipated. The forward-looking statements reflect knowledge and information available at the date of preparation of this announcement and the Company undertakes no obligation to update these forward-looking statements. All written or oral forward-looking statements attributable to IMI plc are qualified by this caution. Nothing in this Interim Financial Report should be construed as a profit forecast.

 

 

Responsibility statement of the directors in respect of the Interim Financial Report

 

We confirm that to the best of our knowledge:

·      the condensed set of interim financial statements has been prepared in accordance with IAS 34 'Interim Financial Reporting' as adopted by the UK

·      the Interim Financial Report includes a fair review of the information required by DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements, and a description of the principal risks and uncertainties for the remaining six months of the year, and

·      there were no changes in the related party transactions described in the 2023 Annual Report that materially affected the Group's results or financial position during the six months ended 30 June 2024.

 

The directors of IMI plc are listed on the IMI plc website (www.imiplc.com).

Approved by the Board of IMI plc and signed on its behalf by:

 

Roy Twite                                                          Daniel Shook                                       
Chief Executive Officer                                     Chief Financial Officer
25 July 2024                                                      25 July 2024

 

Notes to editors

IMI plc is a FTSE100 global specialist engineering company that designs, manufactures and services highly engineered products

to control the precise movement of fluids. Its innovative motion and flow control technologies, built around valves and

actuators, enable vital sectors to become safer, more sustainable and more productive. IMI combines world class applications

engineering expertise with a continued focus on customer satisfaction, market-led innovation and complexity reduction to

solve its customers most acute engineering problems. IMI employs approximately 10,000 people, has manufacturing facilities

in 18 countries and operates a global service network. The Company is listed on the London Stock Exchange. Further

information is available at www.imiplc.com

 

IMI plc is registered in England No. 714275. Its legal entity identifier ('LEI') number is 2138002W9Q21PF.

 

INDEPENDENT REVIEW REPORT TO IMI PLC

Conclusion

We have been engaged by the company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2024 which comprises the consolidated interim income statement, consolidated interim statement of comprehensive income, consolidated interim balance sheet, consolidated interim statement of changes in equity, consolidated interim statement of cash flows and related notes 1 to 14.

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2024 is not prepared, in all material respects, in accordance with United Kingdom adopted International Accounting Standard 34 and the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority.

Basis for Conclusion

We conducted our review in accordance with International Standard on Review Engagements (UK) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Financial Reporting Council for use in the United Kingdom (ISRE (UK) 2410). A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

As disclosed in note 1, the annual financial statements of the group will be prepared in accordance with United Kingdom adopted international accounting standards. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with United Kingdom adopted International Accounting Standard 34, "Interim Financial Reporting".

Conclusion Relating to Going Concern

Based on our review procedures, which are less extensive than those performed in an audit as described in the Basis for Conclusion section of this report, nothing has come to our attention to suggest that the directors have inappropriately adopted the going concern basis of accounting or that the directors have identified material uncertainties relating to going concern that are not appropriately disclosed.

This Conclusion is based on the review procedures performed in accordance with ISRE (UK) 2410; however future events or conditions may cause the entity to cease to continue as a going concern.

Responsibilities of the directors

The directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority.

In preparing the half-yearly financial report, the directors are responsible for assessing the group's ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's Responsibilities for the review of the financial information

In reviewing the half-yearly financial report, we are responsible for expressing to the company a conclusion on the condensed set of financial statements in the half-yearly financial report. Our conclusion, including our Conclusions Relating to Going Concern, are based on procedures that are less extensive than audit procedures, as described in the Basis for Conclusion paragraph of this report. 

Use of our report

This report is made solely to the company in accordance with ISRE (UK) 2410. Our work has been undertaken so that we might state to the company those matters we are required to state to it in an independent review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company, for our review work, for this report, or for the conclusions we have formed.

 

 

Deloitte LLP

Statutory Auditor

London

25 July 2024