9th May 2024 16:18
(Alliance News) - IMI PLC on Thursday backed its yearly guidance, reporting an "encouraging" first-quarter, even against what investment bank Jefferies labelled a "tough prior year comparative".
In a trading statement for the three months to March 31, the Birmingham, England-based engineering company said group organic revenue was up 4% compared to the same period last year. Adjusted revenue was flat, reflecting foreign currency movements seen in the first quarter.
Chief Executive Roy Twite said: "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."
IMI said Automation, 62% of 2023 sales, delivered a strong performance, with revenue up 12% organically. This reflected a 27% increase in Process Automation revenue, offsetting a decline in Industrial Automation.
But sales in Life Technology, 38% of 2023 sales, fell 6% organically. Life Science and Fluid Control organic revenue was down 22%, as expected, given the tough first quarter comparator and continued softness experienced across the global life sciences device market.
Based on current market conditions, IMI said its guidance remains unchanged.
It still expects that 2024 full year adjusted earnings per share will be between 120 pence and 126p.
IMI said its restructuring programme remains on track to deliver GBP15 million of incremental benefits for the full year and GBP7 million in 2025, with no changes to expected delivery costs.
IMI said it will issue its interim results for the six months ending June 30, on July 26.
Shares in IMI rose 0.8% to 1,860.00 pence in London on Thursday.
Jefferies said the update was "solid" and "delivered against a tough prior year comparative".
Jefferies added: "We expect a limited share price reaction to this update, but we are pleased to see the group delivering good progress in 1Q24, IMI remains an undervalued/quality asset, and we stay at buy."
By Eric Cunha, Alliance News news editor
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