IMI PLC (LON:IMI) chief executive Roy Twite described its financials for 2019 as ‘good, given market headwinds’.
But, the British engineering firm’s boss also cautioned that coronavirus will dent organic revenues in the current financial period.
It detailed that China represented around 8% of group revenue in 2019 and a further 8% of its business is potentially impacted, due to supply chain or its customers exporting into China.
"It is difficult to predict the ultimate impact the coronavirus will have on global supply chains and demand,” Twite said.
“Based on no worsening of the current situation, we expect first half organic revenues to be lower than the first half of 2019, given the end market weakness in the Factory Automation and Commercial Vehicle sectors.
“Our continuing business improvement initiatives are expected to enable us to maintain our margins in the first half of the year."
IMI noted that it continues to follow all local health recommendations at its two sites in China.
In Friday morning’s deals, IMI shares fell 4.23% to trade at 951p.
Financial results for the twelve months ended 31 December 2019 comprised revenue of £1.87bn, down 2%, a 12% drop in statutory operating profit to £204mln, and, a 11% reduction in statutory pre-tax profit to £189mln.
Operating cashflow, meanwhile, rose by 35% to £299mln. Net debt increased to £438mln from £405mln.
IMI’s dividend for the year amounted to 41.1p per shares.
Twite added: “The businesses have made immediate progress with their profit improvement initiatives, resulting in margins for the Group improving in the second half and full year.”
“Each division has taken decisive steps in their long-term, strategic plans to create tremendous value by solving key industry problems and working with the best."