IMI (IMI) H2 2024 earnings summary

Executive summary

• Achieved 4% organic sales growth and 10% organic adjusted operating profit growth in 2024, with adjusted operating margins up 100 basis points to 19.7% year-over-year and a new target set above 20%.

• Adjusted basic EPS increased by 5% to 122.5p, and a 10% increase in the final dividend was announced, raising dividend per share to 31.1p.

• Announced a further GBP 200 million share buyback, with total expected shareholder returns over GBP 275 million in 2024.

• Free cash flow reached GBP 263 million, with a clear path to over GBP 1 billion in the next three years.

• 2025 full year adjusted basic EPS guidance set at 129p–136p, with margins expected above 20%.

Financial highlights

• Revenue increased to GBP 2.21 billion, reflecting 4% organic growth, offset by FX and disposals.

• Adjusted operating profit rose to GBP 436 million, with organic profits up 10%.

• Adjusted basic EPS rose 5% to 122.5p; cash conversion improved to 92%.

• Net debt reduced by GBP 91 million to GBP 548 million; net debt/EBITDA at 1x.

• CapEx increased to GBP 92 million, including a one-off land purchase for a new facility.

Outlook and guidance

• 2025 adjusted EPS guidance set at 129p–136p, with margins expected above 20%.

• Anticipates mid-single-digit organic revenue growth, continued margin progression, and further restructuring benefits.

• Tax rate expected to rise to 25%, and interest charge to GBP 18 million due to buyback and refinancing.

• One-off exceptional charge of GBP 20–25 million in 2025 for cyber incident recovery.

• Restructuring costs of GBP 3–6 million per annum expected.