IMI reports interim earnings climb but notes supply chain disruption

(Alliance News) - IMI PLC on Friday reported an increase in first half revenue and profit across all its three divisions and announced the departure of Non-Executive Director Carl-Peter Forster.

Pretax profit for the six months ended June 30 was GBP123 million, a rise of 31% year-on-year from GBP94 million.

The Birmingham-based specialist engineering company posted revenue of GBP907 million, up 4.6% from GBP867 million.

The company saw increased revenue and profit across all its three divisions.

IMI said it is benefitting from positive market conditions within key business segments including Industrial Automation, Commercial Vehicle and Construction. New products are playing an increasing role in the group's growth, Chief Executive Roy Twite noted.

However, like most industrials, IMI is seeing supply chain constraints for certain components and raw material cost inflation.

"These are being managed well, minimising any impact on service levels to our customers," IMI added.

IMI declared an interim dividend of 7.9 pence per share, increasing 5.3% from 7.5 pence.

"We continue to make excellent progress with our strategy to increase customer intimacy, drive market-led innovation and reduce complexity. We remain on track to deliver our long-term ambition of sustainable profitable growth and group margins of 18% to 20%," added CEO Twite.

Based on the strong first half results and current market conditions, IMI now expects 2021 full year adjusted earnings per share to be in the range of 85 to 90 pence, which at best, would represent 13% growth from 79.7p in 2020.

Adjusted EPS for the first half of 2021 was 39.9 pence.

Also on Friday, IMI said Non-Executive Director Forster will be stepping down at the end of August 2021. Forster is the senior independent non-executive director and chair of the Remuneration Committee.

Thomas Thune Andersen will become senior independent non-executive director and Caroline Dowling will take the chair of the Remuneration Committee, both with effect from September 1.

Shares in IMI were down 0.2% to 1,748.00 pence each in London on Friday morning.

By Amrit Sahota; newsroom@alliancenews.com

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