1st Aug 2025 09:10
(Alliance News) - IMI PLC on Friday raised its interim dividend by 10%, declared a new share buyback, and confirmed its annual guidance, despite a mostly flat performance in the first half of the year.
Shares in the Birmingham, England-based engineering firm were up 1.7% to 2,260.00 pence early Friday in London. They were the third biggest riser in the FTSE 100 index, itself down 0.7% amid concern about US trade tariffs.
IMI said pretax profit was GBP163.0 million in six months that ended June 30, marginally up from GBP162.5 million a year before, as revenue slipped 0.6% to GBP1.09 billion from GBP1.10 billion.
On an adjusted basis, pretax profit was GBP189.5 million, up from GBP187.4 million.
Operating profit was down 10% to GBP158 million from GBP177 million, but up 1.0% to GBP198 million from GBP196 million on an adjusted basis.
IMI said revenue was lower in the recent half-year due to currency movements. It was up 2% on an adjusted, organic basis. On the same basis, operating profit was up 5%.
Looking ahead, IMI confirmed its 2025 guidance for mid-single-digit percentage organic revenue growth and adjusted basic earnings per share of between 129p and 136p. Adjusted EPS was 56.1p in the first half of the year, up 2.6% from 54.7p a year before. It was 122.5p in all of 2024, so IMI is guiding for at least 5.3% growth in 2025, which would match the growth recorded in 2024.
IMI declared a 11.0 pence interim dividend, up 10% from 10.0p a year before. It also announced a new GBP200 million share buyback.
Chief Executive Roy Twite said the returns were made possible by IMI's strong cash flow, saying the company expects to generate more than GBP1 billion in free cash flow over the next three years.
By Tom Waite, Alliance News editor
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