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(Alliance News) - IMI PLC on Friday said profit increased in 2020, aided by lower cost of sales and operating costs, though it considerably reduced its dividend.
The Birmingham-based specialist engineering company posted a GBP215.3 million pretax profit for 2020, up 14% from GBP189.3 million the year before.
Revenue dipped 2.1% to GBP1.83 billion from GBP1.87 billion. However, a reduction in cost of sales meant gross profit was slightly higher at GBP816.2 million versus GBP813.3 million year-on-year.
Furthermore, operating costs shrank to GBP589.4 million from GBP609.0 million, which also boosted profit.
Dividend per share fell 45% to 22.5 pence from 41.1p, including a final dividend 43% lower at 15.0p from 26.2p. The 2019 dividend includes a postponed dividend paid September 2020.
Chief Executive Roy Twite said: "Margins have improved and our culture change and growth initiatives are gaining traction. IMI has also advanced its ESG agenda as we work to build on the positive contribution our solutions make to the wider world. We expect further progress during 2021.
"Based on current market conditions, and assuming no worsening impact from Coronavirus, we expect the group to deliver 2021 adjusted earnings per share of between 75p and 82p."
In 2020, IMI's adjusted basic EPS was 79.7p, up from 73.2p in 2019.
The company additionally announced the appointment of Ajai Puri as a non-executive director, effective March 1. He held various roles at Coca-Cola Co from 1981 to 2003, including senior vice president of Technical (Science & Technology) for Coca-Cola's non-carbonated juice business in North America.
After that, he was an executive board member and president of Research, Development & Product Integrity at Royal Numico NV from 2003 to 2007. He became a non-executive director at Nutreco in 2009, a role he departed in 2015.
Puri is currently a non-executive director at three publicly traded companies, including FTSE 250-listed food and beverage ingredients maker Tate & Lyle PLC.
Shares in IMI were down 0.2% at 1,334.00p in London on Friday morning.
By Anna Farley; annafarley@alliancenews.com
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