IMI full year profits, underlying revenues fall
Full year pre-tax profits at engineering group IMI fell 5% to £208m, in line with expectations.
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Group revenues were 6% higher at £1.64bn. On a constant currency basis they fell 5% due to continuing difficult end markets, IMI said.
The total dividend rose 1% to 38.70 pence.
It added that trading conditions in many of its geographies and markets remained difficult throughout 2016.
“The cautious industrial investment environment continued to impact new order opportunities as customers tightened spending in the face of economic and political uncertainty,” the company said.
The oil & gas market, which represents almost a third of IMI's critical engineering revenues, continued to be impacted by falling investment, including a significant reduction in liquid natural gas (LNG) projects.
“The power generation sector was impacted by lower operational spending reflecting delays, particularly in North America, where power providers have extended the time between planned outages,” IMI said.
“While European and Asia Pacific truck markets remained resilient, the US heavy truck market declined significantly which impacted revenues in Precision Engineering. Industrial Automation markets globally were broadly flat with some signs of recovery in Europe and North America in the final quarter of the year.”
"Based on current market conditions, we expect organic revenues in the first half of 2017 to reflect a similar percentage reduction to the first half of 2016, with margins slightly lower than the first half of last year. Results for the full year are expected to include a second half bias reflecting the timing of restructuring benefits and normal trading seasonality," said Chief Executive Mark Selway.