Engineering group continues to show improvement

Birmingham-based engineering group IMI has continued its improved trading since the autumn.

It now expects organic revenues in the first half of 2017 to “reflect a smaller reduction than previously indicated” when compared to the first half of 2016, with margins slightly lower than the first half of last year.

IMI’s share price has risen by nearly 50% since mid-November, increasing its market value to £3.5bn.

Its 2016 pre-tax profits were down by 5% to £208m and it announced plans to close eight of its sites as part of a cost-cutting programme.

It said: “Our strategic plan to drive sustainable long-term growth continues to make a real difference across all parts of the group.

“Our new product pipeline continues to develop well, the operational performance of our manufacturing facilities has further improved and the new systems and processes we are putting in place are enabling us to do business more efficiently.

“The reorganisation activities across all three divisions are progressing well and according to plan.”