Further strategic and operational progress made across the business
Completion of attractive Adaptas acquisition and £200m share buyback
Purpose and global environmental focus continue to unlock opportunities
Preliminary results, year ended 31 December 2021
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Adjusted1 |
Statutory |
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2021 | 2020 | Change vs 2020 |
Organic3 vs 2020 |
Organic3 vs 20194 |
2021 | 2020 | Change vs 2020 |
Change vs 2019 |
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| Revenue | £1,866m | £1,825m | +2% | +7% | +3% | £1,866m | £1,825m | +2% | 0% | ||
| Operating profit | £318m | £285m | +12% | +18% | +23% | £251m | £227m | +10% | +23% | ||
| Operating margin | 17.0% | 15.6% | +140bps | 13.4% | 12.4% | +100bps | +250bps | ||||
| Profit before tax | £307m | £274m | +12% | £245m | £214m | +14% | +29% | ||||
| Basic EPS | 92.0p | 79.7p | +15% | 73.5p | 62.7p | +17% | +28% | ||||
| Operating cash flow2 | £274m | £335m | -18% | £327m | £377m | -13% | -10% | ||||
| Dividend per share | 23.7p | 22.5p | +5% | 23.7p | 22.5p | +5% | |||||
| Net debt | £623m | £316m |
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1 Excluding the effect of adjusting items as reported in the income statement. See Note 1 for definitions of alternative performance measures.
2 Adjusted operating cash flow, as described in Note 9 to the financial statements. Statutory measure is Cash generated from operations as shown on the cash flow statement.
3 After adjusting for exchange rates, acquisitions and disposals (see Note 1).
4 Given the significant impact on business performance due to the pandemic in 2020, the results include comparative figures for 2019 and organic growth compared to 2021. A reconciliation is provided in Note 1.
Key points
- Good progress towards sustainable, profitable growth and Group adjusted operating margins of 18% - 20%
- 7% organic sales growth, 18% organic adjusted operating profit growth
- Increased organic revenues, adjusted profits and margins in all three divisions
- Statutory operating profit increased 10%
- Statutory profit before tax increased 14%
- Growth Hub and Sprint Teams delivered £23m orders, with momentum building
- Adaptas acquisition completed in attractive Life Sciences market
- ESG agenda gaining pace
- Accelerated benefits and complexity reduction from restructuring supports margin improvement
Lord Smith of Kelvin, Chairman, commented:
“2021 has been another year of progress on many fronts, demonstrating how culture and purpose can drive fundamental change in an organisation, whilst fuelling profitable growth. Our absolute ambition is that everyone in the organisation is actively included in delivering our unifying purpose [Breakthrough Engineering for a better world] as we generate significant value for all of our stakeholders.”
Roy Twite, Chief Executive, said:
“In 2021 we have made excellent progress with our accelerated growth strategy through increasing customer intimacy, market-led innovation and reducing complexity. The Growth Hub and Sprint Teams continue to lead important cultural change, as well as increasing orders. We also completed the acquisition of Adaptas in the attractive Life Sciences market and concluded a £200m share buyback programme. In 2022, we expect further progress towards our ambition of sustainable profitable growth and Group margins of 18% to 20%.”
“Based on the strong 2021 results and current market conditions we expect 2022 full year adjusted EPS to exceed 100p.”
Enquiries to:
|
John Dean |
IMI |
Tel: +44 (0)121 717 3712 |
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Stephen Malthouse |
Headland PR |
Tel: +44 (0)7734 956 201 |
A live webcast of the analyst meeting taking place today at 08:30am (GMT) will be available on the investor page of the Group’s website: www.imiplc.com. The Group plans to release its next Interim Management Statement on 5 May 2022.
To read the full press release in Acrobat PDF format please click here