Invensys widens first-half losses

Invensys is battling to rebuild its balance sheet

Troubled engineering group Invensys has widened its half-year losses and scaled back the amount it expects to raise from disposals.

Invensys has been slimming down to core production management and rail units as as part of a "back-to-basics" strategy.

Assets were sold to slash debt after the firm was hit by spending cutbacks by its telecoms and software customers.

The company, which was relegated from the FTSE 100 this year, increased first-half losses to £148m from £97m.

Shading down

Chief executive Rick Haythornthwaite said he has taken a more conservative view on the amount the group will make from its disposal programme as he "shaded down expectations".

Returns from the process were now likely to be "in excess of £1.8bn", rather than the "substantially in excess" mentioned previously.

Under Mr Haythornthwaite, the company has already sold off its Baan, Teccor and Metering units.

But he warned that suitors interested in the remainder of the businesses up for sale, including its appliance and climate divisions, were becoming "cagier" about growth prospects and restructuring costs.

On a more positive note, the company said its underlying performance appeared brighter, with sales growing at the two remaining core divisions of Production Management and Rail Systems.

The latter reported a strong order book, helped in part by work on the first of two London Underground contracts.