REG - IMI PLC - Trading Update

IMIAnnouncement

Yesterday 07:01

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250508:nRSH7848Ha&default-theme=true

RNS Number : 7848H  IMI PLC  08 May 2025

8 May 2025

 

Full year guidance reconfirmed

Strong order momentum in Process Automation

Transport sector placed under strategic review

 

IMI plc ("IMI" or the "Group"), the specialist engineering company, issues the
following trading update which covers results for the first quarter from 1
January to 31 March 2025.

 

Roy Twite, Chief Executive, commented:

 

"We are pleased to reconfirm our guidance for the full year. We continue to
expect to deliver another year of mid-single digit organic revenue growth in
2025. As expected, organic revenue in the first quarter was modestly lower
than last year and Group margins were up.

 

We saw strong momentum in the Process Automation Aftermarket where orders were
up 19% organically in the first quarter. The overall Process Automation
orderbook is 13% higher than March 2024. We are also pleased to report
continued good demand for our energy efficient solutions in Climate Control.

 

At IMI we have an extremely disciplined approach to capital allocation and are
committed to the delivery of our financial framework. As such, we are
announcing the strategic review of our Transport sector to assess its ability
to deliver our medium-term financial targets.

 

The growth strategy launched in 2019 has fundamentally transformed IMI and
created significant value for shareholders. Although the current external
environment is evolving quickly, we are confident in the future and well
positioned to support our customers, remaining alert for opportunities to
unlock further growth."

 

First quarter performance

 

Group organic revenue was 3% lower than the same period last year. Adjusted
revenue was 5% lower, reflecting adverse foreign currency movements and the
disposal of IMF in April 2024. Group margins improved in the first quarter.

 

Automation

 

Automation (64% of 2024 sales) revenue was down 4% organically, as we saw some
temporary disruption from the cyber incident in the first quarter.

 

·      Process Automation (41% of 2024 sales) organic revenue was 1%
lower, reflecting the 27% organic growth delivered in the same period last
year and the phasing of project deliveries. Orders increased 7% organically in
the quarter. Aftermarket orders were up 19% organically in the first quarter,
including several large nuclear orders with delivery expected in future years.

 

·      Industrial Automation (23% of 2024 sales) organic revenue was 7%
lower than the same period last year, reflecting the one-off impact from the
cyber incident in the first quarter and subdued industrial conditions in
Europe and the Americas.

 

Life Technology

 

 

Life Technology (36% of 2024 sales) revenue was down 2% organically in the
first quarter.

 

·      Climate Control (18% of 2024 sales) organic revenue was 4% higher
than the same period last year as we saw continued good demand for our energy
efficient products.

 

·      Life Science and Fluid Control (10% of 2024 sales) organic
revenue was flat in the first quarter.

 

·      Transport (8% of 2024 sales) organic revenue was 16% lower than
the same period last year, as expected given the 19% organic growth delivered
in the first quarter of 2024.

 

 

 

Strategic review of Transport sector

 

IMI has been through a period of significant transformation since 2019.
Adjusted basic earnings per share have grown at an 11% CAGR over the last five
years and we have returned over £650m to shareholders during this period. A
further £200m share buyback is currently underway.

 

As active managers of the business, we remain committed to a disciplined
approach to capital allocation and the delivery of our financial framework. As
such, we are announcing the strategic review of our Transport sector. This
sector delivers high value solutions for both the conventional and zero
emission commercial vehicle markets. While performance within its end market
is strong, we will be assessing its ability to deliver against IMI's financial
framework over the medium term. The sector represented 8% of IMI's revenue in
2024.

 

Exchange rates

 

If exchange rates as at 25 April 2025 of US$1.33 and €1.17 remain constant
for the remainder of the year it would negatively impact both revenue and
adjusted operating profit by approximately 2% in the 2025 full year when
compared to 2024.

 

Full year guidance reconfirmed

 

Over the past six years we have significantly improved the resilience of IMI
and built what is now a dynamic, agile and entrepreneurial business with a
regional manufacturing footprint. Consequently, we believe we are well
positioned to manage the direct impact of currently proposed tariffs through
our global footprint and pricing surcharges where necessary. We will remain
alert to any changes in customer behaviour and respond quickly to
opportunities to unlock further growth.

 

We have had a good start to the year and continue to make strong strategic
progress. We are reconfirming guidance that 2025 full year adjusted EPS will
be between 129p and 136p, whilst remaining mindful of the broader economic
impact from tariffs. We expect the current 2% foreign exchange headwind will
be somewhat offset by a reduction in our weighted average number of shares to
around 249 million. We continue to closely monitor developments for any
material changes to underlying market conditions.

 

Interim results

 

IMI will issue its interim results announcement in respect of the six months
ending 30 June 2025 on 1 August 2025.

 

Enquiries

 

 Edward Hann  IMI       Tel: +44 (0)7977 354 810
 Matt Denham  Headland  Tel: +44 (0)7551 825 496

 

A conference call for analysts and investors will be held at 08:00 GMT today
to discuss this statement. To access the call, please register using the link:

 

https://www.netroadshow.com/events/login?show=2d591b9b&confId=80499
(https://www.netroadshow.com/events/login?show=2d591b9b&confId=80499)

 

 

 

 

Notes

 

IMI plc is a global leader in fluid and motion control. Its innovative
solutions, built around valves and actuators, enable vital sectors to become
safer, more productive and more energy efficient. IMI combines world-class
applications engineering expertise with a continued focus on commercial
excellence, 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. IMI is a member of the FTSE 100 and is listed on the London
Stock Exchange. Further information is available at www.imiplc.com
(http://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.

 

Brand materials can be found here
(https://imi.frontify.com/d/bf8dsNivmjuw/brand-library#/-/photography-library)
.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTUBRARVBUVRUR