IMI (LSE: IMI) capped off a strong year with rising profits and revenue in 2023, announcing its intention to maintain its profit margin growth trajectory. The engineering company reported a 6% increase in pretax profits to £302 million compared to 2022, alongside a 7.2% revenue surge to £2.20 billion.
IMI credited a £20 million cost-saving initiative from restructuring for its financial performance, with plans to achieve an additional £15 million and £7 million in savings throughout 2024 and 2025, respectively. Shareholders are set to benefit from the company’s success, with a proposed final dividend of 19.2 pence per share, bringing the total payout to 28.3 pence, a 10% increase from the previous year.
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“We’re proud to deliver our fourth consecutive year of profit and adjusted operating margin growth,” said CEO Roy Twite. “Our purpose-driven strategy positions us well for continued success,” adding, “Our diversified portfolio, with nearly half of our sales generated from the aftermarket sector, positions us well for long-term growth. We’re confident in achieving our 20% adjusted operating margin target.”
IMI is now forecasting adjusted earnings per share to fall between 120p and 126p in 2024, representing a minimum growth of 2.7% compared to 2023.
The company also anticipates continued progress towards its 20% adjusted operating margin target, having already improved from 17.8% in 2022 to 18.7% in 2023. Despite the positive outlook, IMI’s share price dipped slightly on Friday morning, although it remains up 3.5% year-to-date.
