28th Feb 2025 09:54
(Alliance News) - IMI PLC on Friday announced a new share buyback, and posted 2024 profit growth, hailing "another strong year" driven by its Process Automation division.
The engineering firm said pretax profit in 2024 rose 9.3% to GBP330.4 million from GBP302.4 million. Adjusted operating profit rose 6.1% to GBP435.5 million from GBP410.6 million, beating the GBP434 million consensus.
Revenue improved 0.6% to GBP2.21 billion from GBP2.20 billion, beating company-compiled consensus of GBP2.20 billion.
Adjusted operating margin was 19.7% in 2024, and IMI said it is raising its adjusted operating margin target to 20% plus.
In response, shares in IMI rose 5.3% to 1,991.00 pence each in London on Friday morning.
IMI said organic sales growth was 4% in 2024 and highlighted an "outstanding" performance in Process Automation, with a record order book into 2025. It noted good demand for energy-saving solutions in Climate Control and a resilient performance in Industrial Automation, but softer market conditions in Life Science & Fluid Control and Transport.
Chief Executive Roy Twite said: "2024 has been another strong year for IMI, with record profits, good organic growth and strong cash generation. We delivered 4% organic sales growth and 10% adjusted operating profit growth, supported by an outstanding performance in Process Automation and continued demand for our energy-saving technology in Climate Control."
IMI announced a 21.1 pence per share final dividend, rising 9.9% from 19.2p. Its total dividend amounted to 31.1p per share, a 9.9% rise from 28.3p.
The company also announced a further GBP200 million share buyback. It completed a GBP100 million buyback in 2024.
"Over the next three years, we expect to generate in excess of GBP1 billion in free cash flow," Twite added.
Looking ahead, IMI anticipates "another year of strong financial and strategic progress in 2025. We expect full year adjusted basic EPS to be between 129p and 136p, representing mid-single digit organic revenue growth." In 2024, adjusted basic EPS was 122.5p, up 4.9% from 116.8p in 2023.
IMI said it expects to take an adjusting item of GBP20 million to GBP25 million in relation to the cyber incident earlier this month. This includes IT systems recovery, risk management, upgraded IT infrastructure and advisory costs.
By Jeremy Cutler, Alliance News reporter
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