IMI revenue tops £2bn as FTSE 250 maker boosted by growth in precision engineering division
- The Birmingham-based company saw its turnover rise 10% to £2.05billion last year
- IMI designs fluid control technology for industries such as energy and life sciences
- All three divisions of IMI increased sales and operating profit
IMI’s revenues topped £2bn last year following an outstanding performance in its precision engineering business.
The Birmingham-based company, which designs fluid control technologies for sectors such as energy, life sciences and industrial automation, saw its revenue increase by 10% to 2, 05 billion pounds in 2022.
Over the same period, profit increased for the third consecutive year from £30 million to £226.3 million, with price increases and efficiency savings from restructuring programs offsetting additional cost pressures.
Growth: Birmingham-based IMI, which designs fluid control technologies for sectors such as energy and industrial automation, saw its turnover increase by 10% to £2.05bn in 2022
The company’s three divisions achieved an expansion in sales and operating profits, but its precision engineering arm drove most of the growth, with revenue climbing $150 million. pounds to £986 million.
IMI said trading within the segment reflected “positive conditions in our key end markets” and strong performance from recently acquired businesses.
The company said the order book for Adaptas, a laboratory equipment supplier bought in December 2021, was 66% higher year-on-year at £40 million.
Since then, the FTSE 250 group has acquired German firm Bahr for £83m, as well as micro-fluidics specialist CorSolutions and Blackburn-based Heatmiser.
IMI has bought Blackburn-based Heatmiser, a maker of thermostats and underfloor heating systems, as part of plans to boost its presence in the “smart buildings” sector.
The demand for smart temperature controls has skyrocketed in recent years and is expected to continue to grow due to increased concerns over climate change and energy efficiency.
The topic of energy conservation rose to prominence last year after oil and gas prices soared following the easing of Covid-19 restrictions and the war in Ukraine .
But the company’s critical engineering business, which is heavily exposed to the oil industry, saw aftermarket orders jump 16% on an organic basis, while the division’s backlog at the end of December was 18% higher year-on-year at £627million.
Managing Director Roy Twite, who joined IMI 35 years ago, said: “We are aligned with attractive growth markets and have a resilient portfolio supported by long-term global macroeconomic trends.”
“This, combined with our continued focus on customer satisfaction, market-driven innovation and complexity reduction, creates real value.”
The company announced a proposed final dividend of 17.4 pence per share for investors, bringing its annual dividend to 25.7 pence, an increase of 8% on the previous year.
IMI shares were 0.25% lower at £15.79 late Friday afternoon, but have more than halved in the past three years.