Continued strategic progress, delivering 5% organic operating profit growth
On track to deliver our fourth consecutive year of mid-single digit organic revenue growth
Full year guidance reconfirmed
Interim results, six months ended 30 June 2025
|
|
Adjusted1 |
Statutory |
|||||
|
|
H1 2025 |
H1 2024 |
Change |
Organic4 |
H1 2025 |
H1 2024 |
Change |
|
Revenue |
£1,091m |
£1,098m |
-1% |
+2% |
£1,091m |
£1,098m |
-1% |
|
Operating profit |
£198m |
£196m |
+1% |
+5% |
£158m |
£177m |
-10% |
|
Operating margin |
18.2% |
17.9% |
+30bps |
|
14.5% |
16.1% |
-160bps |
|
Profit before tax |
£190m |
£187m |
+1% |
|
£163m |
£163m |
+0% |
|
Basic EPS |
56.1p |
54.7p |
+3% |
|
45.7p |
48.2p |
-5% |
|
Operating cash flow2 |
£158m |
£130m |
+21% |
|
£172m |
£170m |
+1% |
|
Free cash flow3 |
£30m |
£65m |
-54% |
|
£30m |
£65m |
-54% |
|
Dividend per share |
11.0p |
10.0p |
+10% |
|
11.0p |
10.0p |
+10% |
|
Net debt / EBITDA |
1.4x |
1.2x |
|
|
|
|
|
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 Free cash flow before corporate activity – dividends, M&A and share buybacks.
4 After adjusting for acquisitions, disposals and exchange rates (see Note 3).
Highlights
- One IMI operating model delivering continued growth
- 2% organic sales growth and 5% organic adjusted operating profit growth
- Statutory revenue 1% lower, largely due to foreign exchange
- Automation revenue up 3% organically
- Another excellent performance in Process Automation
- Industrial Automation rebuilding momentum following cyber incident
- Life Technology revenue down 1% organically
- Strong demand for energy-saving solutions in Climate Control
- Life Science & Fluid Control and Transport down, as expected, supportive order books for H2
- Continued margin expansion, with adjusted operating margin 30bps higher than H1 2024
- Commercial excellence and unique market-led approach to innovation driving growth
- £64m of Growth Hub orders in the first half, up 23%
- Process Automation aftermarket orders up 10% organically
- Creating value through our disciplined approach to capital allocation
- Adjusted operating cash flow up 21%
- Free cash flow lower due to cyber incident and pension loan
- Proposed 10% increase in interim dividend, £200m share buyback completed
- Net debt / adjusted EBITDA towards the midpoint of our 1x – 2x target range
- Full year guidance reconfirmed
- Strong momentum heading into the second half
- On track to deliver our fourth consecutive year of mid-single digit organic revenue growth
- Full year adjusted basic EPS is expected to be between 129p – 136p
Roy Twite, Chief Executive Officer, said:
“The growth strategy launched in 2019 has fundamentally transformed IMI, materially strengthening our competitive position, driving a step change in customer satisfaction, market-led innovation and operational efficiency and laying the ground for compounding organic growth.
We made further progress in the first half. As expected, we delivered 2% organic sales growth and 5% organic adjusted operating profit growth. Process Automation delivered another outstanding performance, with the order book now 5% higher than June 2024. We also saw strong demand for our energy efficient solutions in Climate Control.
There is strong momentum in our business heading into the second half, underpinned by a record order book in Process Automation, continued strong demand in Climate Control, improving trends and catch-up shipments in Industrial Automation, and supportive order books in both Transport and Life Science & Fluid Control.
I am therefore very pleased to reconfirm our guidance for 2025. We are on track to deliver our fourth consecutive year of mid-single digit organic revenue growth and continue to expect that full year adjusted basic earnings per share will be between 129p and 136p.
Our One IMI operating model is the foundation of our growth and performance. We are accelerating the pace of innovation, scaling best practices, and unlocking new opportunities for growth. We hold leading positions in long-term growth markets and create significant value for our customers through our mission-critical solutions. Our strategic focus on higher margin aftermarket content, which now represents about 45% of Group sales, continues to underpin our performance.
With a strong balance sheet and highly cash-generative business model, we are well positioned to continue investing in organic growth, pursue value-accretive bolt-on acquisitions, and return excess capital to shareholders.”
Enquiries
|
Edward Hann |
IMI |
Tel: +44 (0)7977 354 810 |
|
Faeth Birch |
FGS Global |
Tel: +44 (0)7768 943 171 |
|
James Gray |
FGS Global |
Tel: +44 (0)7814 379 412 |
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 6 November 2025.
To read the full press release in Acrobat PDF format please click here