Accelerating business performance with improving growth and margin
On track for sustainable, profitable growth and Group operating margin of 20%
Increasing momentum from purpose-led strategy and Growth Hub
Interim results, six months ended 30 June 2022
Adjusted1 | Statutory | ||||||
H1 2022 | H1 2021 | Change | Organic3 | H1 2022 | H1 2021 | Change | |
Revenue | £972m | £907m | +7% | +3% | £972m | £907m | +7% |
Operating profit | £160m | £142m | +12% | +9% | £129m | £123m | +5% |
Operating margin | 16.4% | 15.7% | +70bps | 13.3% | 13.6% | -30bps | |
Profit before tax | £154m | £137m | +13% | £121m | £123m | -2% | |
Basic EPS | 47.1p | 39.9p | +18% | 36.6p | 31.3p | +17% | |
Operating cash flow2 | £79m | £111m | -29% | £111m | £128m | -13% | |
Interim dividend per share | 8.3p | 7.9p | +5% | 8.3p | 7.9p | +5% | |
Net debt | £760m | £339m |
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).
Continued strong performance
- 7% sales growth, 13% adjusted profit before tax growth, 18% adjusted basic EPS growth
- Adjusted operating margin 70bps higher than H1 2021
- Statutory operating profit up 5%
- Statutory profit after tax up 12%
- Order book growth, £22m of Growth Hub orders, pipelines growing
- Operating cash flow impacted by higher inventory to prioritise customer service
- Bahr acquisition provides highly scalable electric actuation portfolio
- Interim dividend increased by 5%
- Group operating margin target increased to 20% through the cycle
- Continue to expect full year adjusted EPS to exceed 100p
Roy Twite, Chief Executive, said:
"We have made excellent progress with our purpose-led strategy during the first half. We are creating tremendous value for all our stakeholders by increasing customer intimacy, driving market-led innovation and reducing complexity. We continue to invest in Growth Hub and Sprint Teams, delivering £22m of orders from these projects during the first half. We completed the acquisition of Bahr Modultechnik, the electric linear automation specialist, offering the potential for great synergies with our existing businesses. We remain on track to deliver our long-term ambition of sustainable profitable growth and achieve our 20% margin target through the cycle."
"Based on the strong first half result and current market conditions we continue to expect 2022 full year adjusted EPS to exceed 100p."
Enquiries
Luke Grant | IMI | Tel: +44 (0)7866 148 374 |
Matt Denham | Headland PR | Tel: +44 (0)7551 825 496 |
A live webcast of the analyst meeting taking place today at 08:00am (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 8 November 2022.
To read the full press release in Acrobat PDF format please click here
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IMI plc published this content on 29 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 July 2022 06:13:10 UTC.