Currency tailwinds push expectations higher at engineering group

Engineering group IMI believes its results will be better than expected after a positive third quarter.

The Birmingham-based group, which employs around 11,000 people, has benefitted from organic sales growth of 3% but it is the positive benefit of the weaker pound that is raising expectations.

IMI’s financial results are being favourably impacted by the effects of exchange rate movements compared to 2016, and in particular by the weakening of Sterling against the US Dollar and the Euro. At current rates, it is forecasting this will translate to an exchange rate tailwind for the full year of around 6% on both revenues and profits.

In a statement to the stock market it said “economic and market conditions have continued to be mixed” but that is continues to make progress on its strategic initiatives.

The group has seen its share price perform well in the last 12 months, despite a summer dip. Last night it closed at 1250p, 40% higher than last November, which gave the group a market value of £3.4bn.