IMI PLC on Thursday lifted its full-year outlook, after reporting revenue growth in the first quarter of 2023.
The Birmingham, England-based engineering firm said organic revenue in the first quarter of 2023 was up 8% compared to the same period last year and 16% higher on an adjusted basis. All three of its divisions improved margins annually, IMI added.
The company reported that IMI Precision organic revenue grew by 4% in the first quarter or by 12% on an adjusted basis.
IMI Critical organic order intake in the period was up 50% on prior year, including a £26 million order within its Marine sector which covers deliveries in the coming years, IMI noted. Organic revenue in the division during the quarter was up 13% compared to the corresponding period in 2022, and 16% on an adjusted basis.
IMI Hydronic revenue in the first quarter was 12% higher on an organic basis, and 25% higher on an adjusted basis annually, driven by demand for its solutions that support energy efficiency.
Looking ahead, IMI said that based on current market conditions, it now expect 2023 full year adjusted earnings per share to be in the range of 112 pence to 117p. This is higher than previous expectations of 111p and greater than 2022’s EPS of 105.5p.
The company added that it remain confident in delivering its growth targets and the 20% operating margin target, through the cycle over time.
Further, IMI said that its restructuring programme remains on track to deliver £20 million of benefits for the full year, £13 million of benefits in 2024 and £9 million in 2025.
Chief Executive Roy Twite said: ‘Our purpose-led strategy, Breakthrough Engineering for a better world, continues to drive sustainable, profitable growth. Our solutions help our customers become safer, more sustainable and more productive and we are continuously creating value through a focus on customer satisfaction, market-led innovation and complexity reduction. These actions have allowed us to deliver a ninth consecutive quarter of organic growth and improved margins in all three divisions.’
Shares in IMI were up 1.8% to 1,628.00 pence each in London on Thursday morning.
IMI will issue results for the six months ending June 30 on July 28.
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