IMI expects more growth in 2018 as revenues reach £1.75bn

IMI is expecting to see growth and improving market conditions in 2018, building on the engineering group’s “year of important progress”.

The Birmingham-based group increased pre-tax profits by 9% to £181m in 2017, with revenues up 6% to £1.75bn.

Mark Selway, IMI chief executive, said: “2017 was another year of important progress for IMI. The combination of a growing pipeline of great new products and the continued drive to improve our operational performance is enhancing our competitiveness, the results from which will become increasingly evident as markets continue to recover.”

Last month IMI completed the £148m acquisition of US manufacturer Bimba, which will nearly double the size of IMI Precision Engineering’s US industrial automation business.

Selway added: “In the first half of 2018 we expect organic revenues to be higher than the same period in 2017 with margins reflecting a modest improvement, supported by both rationalisation savings and improved market conditions in IMI Precision Engineering. Results for the full year will also reflect our normal second-half bias.”

IMI’s share price has slipped 15% since mid-January’s three-year high. Last night’s close of 1229p values the group at £3.4bn.