9 May 2024
First quarter performance in
line with expectations
Full year guidance
reconfirmed
IMI, the specialist engineering
company, issues the following Interim Management Statement which
covers results for the first quarter from 1 January to 31 March
2024.
Roy Twite, Chief Executive,
commented:
"We were pleased to deliver another
solid quarter of organic growth, up 4% in the first quarter, in
mixed markets and against a strong comparator. Based on current
market conditions, our guidance remains unchanged and we still
expect that 2024 full year adjusted EPS will be between 120p and
126p".
Encouraging first quarter performance
Group organic revenue was up 4%
compared to the same period last year. Adjusted revenue was flat,
reflecting the foreign currency movements seen in the first
quarter.
Our restructuring programme remains
on track to deliver £15m of incremental benefits for the full year
and £7m in 2025, with no changes to expected delivery
costs.
Sector performance in line with expectations
Automation
Automation (62% of 2023 sales)
delivered a strong performance, with revenue up 12%
organically.
Process Automation (37% of 2023
sales) had an excellent quarter as we saw continued momentum across
our energy end markets and further progress in the Aftermarket.
Organic revenue was 27% higher than the prior period. Orders were
down 3% organically, due to the one-off £26m Marine order in the
prior period.
Industrial Automation (25% of 2023
sales) organic revenue was 5% lower than the same period last year,
reflecting the strong first quarter comparator and lower industrial
activity in Europe and the Americas.
Life Technology
As expected, Life Technology (38% of
2023 sales) revenue was down 6% organically in the first quarter
versus the same period last year. We continue to expect the
platform to be broadly flat in the full year.
Climate Control (18% of 2023 sales)
organic revenue was 4% lower than the prior period, as expected
given the 12% organic growth delivered in the first quarter of
2023. Whilst dynamics in the European construction market did
impact sales in the quarter, underlying demand for our energy
efficient products remains strong.
Life Science and Fluid Control (12%
of 2023 sales) organic revenue was down 22%, as expected given the
tough first quarter comparator and continued softness experienced
across the global life sciences device market.
Transport (8% of 2023 sales) organic
revenue grew 19% in the first quarter. We continue to benefit from
strong growth in Asia and our new product launches, supported by
favourable regulatory tailwinds.
Disposal of non-core business
On 25 April 2024 the Group disposed
of Industrie Mécanique pour les Fluides, a non-core subsidiary
within the Life Science & Fluid Control sector, for an
enterprise value of €19m. The business contributed around 1% of
sales and operating profit in 2023.
Exchange rates
If exchange rates as at 26 April
2024 of US$1.25 and €1.17 remain constant for the remainder of the
year, we continue to expect a headwind on both revenue and adjusted
operating profit of 2% in the 2024 full year when compared to
2023.
Outlook
Based on current market conditions,
our guidance for 2024 full year adjusted EPS is unchanged at 120p
to 126p.
Interim results
IMI will issue its interim results
announcement in respect of the six months ending 30 June 2024 on 26
July 2024.
Enquiries
|
Luke Grant
|
IMI
|
Tel: +44 (0)7866 148 374
|
|
Matt Denham
|
Headland
|
Tel: +44 (0)7551 825 496
|
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.netroadshow.com/events/login?show=ed69d8ce&confId=64057
Notes
IMI plc is a FTSE100 global
specialist engineering company that designs, manufactures and
services highly engineered products to control the precise movement
of fluids. Its innovative motion and flow control technologies,
built around valves and actuators, enable vital sectors to become
safer, more sustainable and more productive. IMI combines world
class applications engineering expertise with a continued focus on
customer satisfaction, market-led innovation and complexity
reduction to solve its customers most acute engineering problems.
IMI employs approximately 10,000 people, has manufacturing
facilities in 18 countries and operates a global service network.
The Company is listed on the London Stock Exchange. 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.