Invensys' strategy reaping rewards

The company, which provides railway signalling systems and controls for a wide range of domestic appliances, said it was particularly encouraged by its workload in emerging markets, accounting for 40 per cent of orders.

Its order book stood at just over 2.3bn at the end of March, an increase of 78 per cent over two years. Revenues were 2 per cent lower at 2.2bn in the year to March 31, but operating profits increased by 4m to 248m and pre-tax profits by 14m to 179m.

London-based Invensys, which employs 3,000 people in the UK out of a total workforce of 20,000, returned to the FTSE 100 Index in the summer of 2008 after a debt restructuring and disposal process earlier in the decade.

Chief executive Ulf Henriksson said the strategy during the recession meant it was now well-placed to benefit from the expected recovery in its markets.

Invensys' order book has grown on the back of some large orders, including a recent contract for control and safety solutions at two nuclear reactors in China.

Mr Henriksson added: "Looking forward, we are positive about the outlook based upon our large order book and our current view of economic conditions."