(Sharecast News) – Engineering company IMI reported a 12% improvement in adjusted revenue in its first-half results on Friday, to £1.08bn, while its operating profit recorded growth of 21% to £193m.
The FTSE 100 firm said its adjusted operating margin for the half-year came in at 17.8%, making for an increase of 140 basis points compared to the same period last year.
Profit before was ahead 17% year-on-year at £180m, while basic earnings per share grew by 15% to 54p.
The company’s operating cash flow meanwhile surged 84% to £145m, while the board announced a 10% increase in its interim dividend, to 9.1p per share.
IMI also announced a significant reduction of its net debt-to-EBITDA ratio, which now stood at 1.6x, compared to 1.8x in the prior year.
“During the first half, we have made excellent progress with our purpose-led strategy, ‘Breakthrough Engineering for a Better World’,” said chief executive officer Roy Twite.
“We are creating value for all our stakeholders by increasing customer intimacy, driving market-led innovation and reducing complexity.
“We continue to help our customers become safer, more sustainable and more productive.”
Twite said the company’s new business structure from July further aligned it to its key sectors, positioning IMI to accelerate growth.
“In light of the success of our Better World strategy we have expanded our financial framework with through-cycle targets of 5% organic growth, a 20% adjusted operating margin and 90% cash conversion.
“In addition, as we grow the business through mergers and acquisitions, we expect return on invested capital to remain above 12%.
“Based on the strong first half result and current market conditions we expect 2023 full year adjusted earnings per share to be between 112p and 117p.”
At 0814 BST, shares in IMI were down 2.31% at 1,607p.
Reporting by Josh White for Sharecast.com.
