Continued strategic progress, organic revenue and profit growth
10% dividend increase and £100m share buyback announced
Full year adjusted EPS guidance reconfirmed
Interim results, six months ended 30 June 2024
|
|
Adjusted1 |
Statutory |
|||||
|
|
H1 2024 |
H1 2023 |
Change |
Organic3 |
H1 2024 |
H1 2023 |
Change |
|
Revenue |
£1,098m |
£1,084m |
+1% |
+5% |
£1,098m |
£1,084m |
+1% |
|
Operating profit |
£196m |
£193m |
+2% |
+6% |
£177m |
£149m |
+19% |
|
Operating margin |
17.9% |
17.8% |
+10bps |
|
16.1% |
13.7% |
+240bps |
|
Profit before tax |
£187m |
£180m |
+4% |
|
£163m |
£139m |
+17% |
|
Basic EPS |
54.7p |
54.0p |
+1% |
|
48.2p |
42.2p |
+14% |
|
Operating cash flow2 |
£130m |
£145m |
-11% |
|
£170m |
£174m |
-2% |
|
Dividend per share |
10.0p |
9.1p |
+10% |
|
10.0p |
9.1p |
+10% |
1 Excluding the effect of adjusting items as reported in the income statement. See Note 2 for definitions of alternative performance measures.
2 Adjusted operating cash flow, as described in Note 2 to the financial statements. Statutory measure is Cash generated from operations as shown on the cash flow statement.
3 After adjusting for acquisitions, disposals and exchange rates (see Note 3).
Key points
- 5% organic sales growth
- 6% organic adjusted operating profit growth
- Adjusted operating margin 10bps higher than H1 2023
- Statutory operating profit up 19%
- Statutory profit before tax up 17%
- Complexity reduction programme delivered £4m benefits in H1
- Proposed interim dividend of 10.0p, increased by 10%
- £100m share buyback announced
Roy Twite, Chief Executive Officer, said:
“We continue to make good progress delivering our purpose-led strategy, Breakthrough engineering for a better world. First half performance was in line with expectations, and we were pleased to deliver 5% organic sales growth and 6% organic adjusted operating profit growth, despite mixed end markets. In line with our disciplined approach to capital allocation, we are today announcing a £100m share buyback programme and a 10% increase to the interim dividend.
Based on current market conditions, we continue to expect that full year adjusted basic earnings per share will be between 120p to 126p.
After nearly 10 years with IMI, Daniel Shook, Group CFO has decided for family reasons to step down from the IMI plc Board in 2025. Dan has been a fantastic partner to me over the last five years. I will really miss him when he does eventually leave, but between now and then, there will be many opportunities for me to thank him for his incredible contribution. We will now be starting a process to find his successor.
We are also pleased to announce the appointment of Jackie Hu as Chief Operating Officer, reporting into me and driving the growth of all five sectors.”
Enquiries
|
Luke Grant |
IMI |
Tel: +44 (0)7866 148 374 |
|
Matt Denham |
Headland |
Tel: +44 (0)7551 825 496 |
A live webcast of the analyst meeting taking place today at 8:00am (BST) 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 7 November 2024.
To read the full press release in Acrobat PDF format please click here