IMI (IMI) H1 2024 earnings summary

Executive summary

• Achieved 5% organic sales/revenue growth and 6% organic adjusted operating profit growth in H1 2024, with adjusted operating margin up 10bps to 17.9%.

• Complexity reduction program delivered £4m in benefits in H1, on track for £15m full-year benefit, concluding in 2024.

• Announced £100m share buyback and increased interim dividend by 10% to 10.0p per share.

• Management changes: CFO to step down in 2025; Jackie Hu appointed COO overseeing five sectors.

• Strategy focused on customer satisfaction, market-led innovation, and complexity reduction to drive sustainable growth.

Financial highlights

• Revenue reached £1.098 billion, up 5% organically year-over-year; organic growth offset by disposals and a 3% FX headwind.

• Adjusted operating profit £196m, up 6% organically; statutory profit before tax £162.5m (+17%), after tax £125.3m (+15%).

• Adjusted basic EPS up 1% to 54.7p, impacted by adverse currency and tax movements.

• Net debt reduced to £606m (1.2x EBITDA), with strong balance sheet and £300m committed bank facilities.

• Operating cash flow £130m; cash conversion at 66%, lower due to working capital investment.

Outlook and guidance

• Full-year 2024 adjusted EPS guidance maintained at 120–126p, with consensus around 123p.

• Guidance assumes share count reduction to 259m, increased interest expense, and higher FX headwind.

• Process Automation order book provides strong cover into 2025, supporting mid-single-digit growth.