IMI sticks with guidance as trading momentum picks up in H2
has reiterated its full-year guidance after a broadly stable first half, with the engineering business hailing "strong momentum" heading into the second half.
The company, which builds products used in fluid and motion control applications, reported revenues of £1.09bn for the six months to 30 June, down 1% on last year due to currency movements.
However, on an organic basis, revenues rose by 2%, as a 1% fall in the Life Technology business - due to weakness in the life science, fluid control and transport sectors - was outweighed by a 3% improvement in the Automation division.
Operating profits rose 1% to £198m, helped by an improvement in operating margins to 18.2% from 17.9%.
Operating cash flow improved 21% compared with last year to £158m, which IMI said was a result of its "disciplined approach to capital allocation", helping it to raise its interim dividend by 10% to 11p per share.
Looking ahead, the company expects organic revenue growth to pick up to a mid-single digit rate for 2025 as a whole.
"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," said chief executive Roy Twite.
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