16th Aug 2007 07:01
IMI PLC16 August 2007 16 August 2007 IMI plc Investigation within the Severe Service business IMI plc has initiated an investigation into possible irregular paymentsassociated with certain trading contracts entered into by its Severe Servicebusiness, which may be in breach of the law and the Company's policies andpractices. The Company is committed to the highest ethical standards and has retainedexternal counsel and forensic accountants to conduct a thorough independentinvestigation which will result in appropriate action being taken, including anumber of employee suspensions. IMI has made appropriate proactive notificationsto the relevant authorities and will co-operate fully with any enquiry fromthose authorities relating to this matter. The early indications are that these irregular payments involve a number ofcommission agents. In total, commission agents represent about 20% of SevereService business or circa £60-70m of sales. Typically total commission paymentsacross our Severe Service business in recent years have been around £3m to £4meach year. At this early stage we have yet to determine the number or value ofany improper payments. IMI is doing everything possible to minimize disruption to the business. As previously announced IMI intends to issue its interim accounts on 3 September2007. - Ends - For further information contact: IMI plcGraham Truscott, Communications Director Tel: 0121 717 3712 Weber Shandwick FinancialNick Oborne / Stephanie Badjonat / Charlie Hooper Tel: 020 7067 0700 Note to editors: IMI is a dynamic, worldwide company delivering innovative engineering solutionsto leading global customers in clearly defined niche markets. Its fivebusinesses share a common goal - to convert their industry knowledge and marketinsight into customised, design-engineered solutions which create customeradvantage and value. These include severe service valves, motion and fluidcontrol systems, indoor climate controls, beverage dispense systems, andmerchandising display systems for retail operations. Close customer relationships, strong positions in growing markets and cleardifferentiation through technological innovation or service are the definingcharacteristics of all IMI businesses. IMI is quoted on the London Stock Exchange. Information about IMI plc can befound on the website: www.imiplc.com. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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