TIDMIMI
RNS Number : 3704K
IMI PLC
05 May 2022
5 May 2022
Accelerating growth and strategic execution
Group margin target increased to 20%
IMI, the specialist engineering company, issues the following
Interim Management Statement which covers results for the first
quarter from 1 January to 31 March 2022.
Strong first quarter performance
IMI has delivered another strong performance with first quarter
Group revenue growth of 9% compared to the same period last year
and 5% higher organically. First quarter margins also slightly
improved.
Our teams continue to remain focused on our accelerated growth
strategy through increasing customer intimacy, market-led
innovation and reducing complexity. These actions have allowed us
to generate strong growth in the order book and revenues as well as
improving margins, helping to mitigate the ongoing supply chain and
inflationary pressures as well as Russian sanctions currently
impacting global markets.
Good momentum in our Growth Hub and Sprint Teams continue to
drive cultural changes through the business. We remain on track to
deliver GBP40m of orders from these projects in 2022.
IMI Precision's revenue growth was 16% in the first quarter,
including a strong performance from Adaptas, our recent acquisition
in the attractive Life Sciences sector. Organic revenue growth was
7% versus the same period in 2021, led by Industrial Automation
which grew 16%. Precision Fluid OEM organic revenue was in line
with the prior year despite an additional GBP8m contribution from
ventilator surge sales in the comparator. Transportation revenue
was in line with the prior year despite the ongoing supply chain
disruptions impacting the sector.
IMI Critical's order book at the end of March was broadly flat
compared to a year ago on a like for like basis, now that we have
removed the orders affected by our decision to exit the Russian
market. IMI Critical organic order intake in the first three months
of 2022 was down 4% versus the same period in 2021 due largely to
timing of New Construction orders. Aftermarket orders increased 5%
in the period with good spare parts growth in LNG and Gas Power.
IMI Critical organic revenue in the three months to the end of
March was flat compared to the first quarter of 2021.
IMI Hydronic revenues in the first quarter were 7% higher on an
organic basis, when compared to last year. There continues to be
strong demand for our energy saving solutions.
Group margin target increased to 20%
Following accelerated progress of our unifying purpose-led
strategy [Breakthrough Engineering for a better world], our
continued strong trading performance and further opportunities
identified for sustained profitable growth, we are pleased to again
increase our margin target for the Group to 20% through the
cycle.
Our footprint optimisation programme continues to reduce
complexity and deliver sustainable margin improvement. This
restructuring programme will be expanded by GBP35m of one-off costs
to support the delivery of faster growth and our increased margin
target.
Divestment of Russia subsidiary
IMI strongly opposes the invasion of Ukraine. We are deeply
concerned for its people and are supporting humanitarian efforts to
provide aid for the unfolding refugee crisis.
IMI fully supports all sanctions, and on 4 March 2022 announced
its decision to end all new business in and international
deliveries to Russia. IMI today announces that it is in the process
of divesting its Russian subsidiary to local management, which it
expects to complete within the next weeks.
Russia accounted for 2% of Group revenue in 2021 and represented
less than 1% of revenue for IMI Precision, 4% for IMI Critical and
2% for IMI Hydronic.
Exchange rates
If exchange rates as at 15 April 2022 of US$1.31 and EUR1.21
were projected for the full year and applied to our 2021 results,
it is estimated that there would be minimal impact to both revenue
and operating profit.
Outlook
Based on current market conditions , we continue to expect that
2022 full year adjusted EPS will exceed 100p.
IMI Precision and IMI Hydronic organic revenues are expected to
be higher, with margins higher in IMI Precision and slightly higher
in IMI Hydronic, consistent with our preliminary results
announcement. IMI Critical revenue and operating margin are both
expected to be in line with last year, despite the 4% revenue
impact from the exit of Russia.
Interim results
IMI will issue its interim results announcement in respect of
the six months ending 30 June 2022 on 29 July 2022.
Enquiries
Tel: +44 (0)7866 148
Luke Grant IMI 374
Stephen Malthouse Headland PR Tel: +44 (0)7734 956
201
A conference call for analysts and investors will be held at
08:00 BST today to discuss this statement. To access the call,
please register using the link:
https://www.incommglobalevents.com/registration/client/10691/imi-plc-interim-management-statement-/
Notes
IMI plc, the specialist engineering company, designs,
manufactures and services highly engineered products that control
the precise movement of fluids. Its innovative technologies, built
around valves and actuators, enable vital processes to operate
safely, sustainably, cleanly, efficiently and cost effectively. IMI
employs around 10,000 people, has manufacturing facilities in 19
countries and operates a global service network. The Company is
listed on the London Stock Exchange and is a constituent of the
FTSE4Good Index. Further information is available at www.imiplc.com
.
References to adjusted figures reflect figures as reported to
management and do not include the impact of adjusting items.
References to organic changes are on a constant currency basis and
exclude disposals and acquisitions.
IMI plc is registered in England No. 714275. Its legal entity
identifier ('LEI') number is 2138002W9Q21PF751R30.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTDZLFBLELZBBV
(END) Dow Jones Newswires
May 05, 2022 02:01 ET (06:01 GMT)
Imi (LSE:IMI)
Historical Stock Chart
From Jul 2024 to Aug 2024
Imi (LSE:IMI)
Historical Stock Chart
From Aug 2023 to Aug 2024