City briefs: IMI; Rotala; Coventry Building Society
Engineering giant IMI is reorganising the company into an Automation business and a Life Technology business.
In its half year results today it announced that Jackie Hu will lead the Automation business, to improve productivity, safety and sustainability in the Process Automation and Industrial Automation sectors.
This platform includes IMI Critical Engineering and IMI Precision Engineering’s Industrial Automation business.
Whilst Beth Ferreira will lead the Life Technology business, which will focus on technologies that enhance and improve everyday life, particularly in the areas of health, sustainability and comfort across the Climate Control, Transport, Life Science and Fluid Control sectors.
This platform includes IMI Hydronic Engineering and IMI Precision Engineering’s Fluid OEM and Transportation businesses.
The Solihull-based firm which landed a spot on the FTSE 100 list last month, has seen revenue increase by 12% to £1.084bn and profit before tax and adjusting items rising to £180m, an increase of 17%.
Roy Twite, Chief Executive, said: “During the first half, we have made excellent progress with our purpose-led strategy, Breakthrough Engineering for a Better World. We are creating value for all our stakeholders by increasing customer intimacy, driving market-led innovation and reducing complexity.
“We continue to help our customers become safer, more sustainable and more productive. Our new business structure from July 2023 further aligns us to our key sectors and positions IMI to accelerate growth.
“In light of the success of our Better World strategy we have expanded our financial framework with through-cycle targets of 5% organic growth, a 20% adjusted operating margin and 90% cash conversion. In addition, as we grow the business through M&A, we expect return on invested capital to remain above 12%”.
Transport group Rotala has seen revenues up by 35% to £52.6m in the first six months of the year.
Its profit before tax increased from £4,000 to £865,000 with the firm revealing its profit fluctuated as a result of the marking to market of its fuel derivative position.
A depot and 134 vehicles were sold by the Tividale-headquartered company to to repay the mortgage and hire purchase debt of the assets.
Simon Dunn, Chief Executive of Rotala, said: “The Group performed well in the first six months of the year. COVID-19 has changed bus travel patterns and the bus industry is co-operating closely with central and local Government to align bus services with these changes.
“We expect this process to continue to produce growth opportunities and I believe that the Company is well placed to take advantage of any opportunities that arise.”
Coventry Building Society has delivered a strong performance in the first half of the year, reporting its profit before tax growing to £269m from £158m in 2022.
Mortgage balances grew by £800m, whilst savings saw an increase of £3.2bn, thanks to higher savings rates.
£44m has been invested in this period to improve technology infrastructure, digital transformation, operational and financial resilience.
The building society is the first to achieve B Corp status and has improved its ranking in the Great Place to Work table of super large organisations from 17 to 13.
Steve Hughes, Chief Executive at Coventry Building Society, said: “In a fast-moving interest rate environment we continue to do the basics right. We’ve attracted more members with great value products backed by brilliant service from my colleagues in our contact centres and branches.
“Our competitiveness and service are based on strong financial foundations. We’ve delivered strong profitability, and increased our capital strength, by balancing the benefit we return to today’s members with protecting and investing in the Society for the benefit of future members.
“An important part of this investment is the difference we make to colleagues and the community. We are all immensely proud to improve our ranking as one of the UK’s Great Places to Work, and there is real excitement across the business about our new partnership with Centrepoint and our shared ambition to end youth homelessness.
“Our recently announced B Corp accreditation –the first building society to gain this award – underlines our commitment to our people, members, customers, suppliers and communities”.
