Engineering group IMI said on Friday that both revenues and profits had improved in the six months ended 30 June, leaving the group confident that full-year adjusted earnings per share will exceed 100.0p.
IMI said interim revenues were up 7% year-on-year at £972.0m, while operating profits grew 12% to £160.0m and pre-tax profits rose 13% to £154.0m. Operating margins expanded 70 basis points to 16.4% and the company highlighted that it was continuing to target 20% margins through the cycle.
The FTSE 250-listed group, which declared a 5% hike in its interim dividend to 8.3p, said it had delivered a “continued strong performance”, with the group creating “tremendous value” for shareholders by increasing customer intimacy, driving market-led innovation, and reducing complexity.
Net debt rose in the half, up from £339.0m to £760.0m at the end of the period, with funds being obtained as part of an effort to finance IMI’s acquisition of electric linear automation specialist Bahr Modultechnik and cover costs associated with the continued investment into Growth Hub and Sprint Teams.
As of 0915 BST, IMI shares were up 2.71% at 1,327.0p.
Reporting by Iain Gilbert at Sharecast.com
