IMI improves but weak Eurozone softens demand
ENGINEERING group IMI has reported rises in half year revenue and profits despite certain divisions struggling because of weaker demand due to the difficulties in the Eurozone.
For the six months to June 30, 2012 revenue came in at £1,090m (2011: £1,032m), up 6%, while pre-tax profit rose 7% to £154m (2011: £144.3m).
The group has also announced a series of high level board appointments which will see former Tata Motors chief executive Carl-Peter Forster and Managing Director of British Gas Peter Bentley becoming non-executive directors.
Announcing a 7% increase in its interim dividend, the group said it was hopeful of making further progress during the remainder of the year – even taking into account the situation in the rest of Europe.
Roberto Quarta, IMI chairman, said: “The group has delivered a good set of results in the first half of the year with organic revenue growth of 5%, underlying earnings growth of 7% and a dividend increase of 7%.
“Whilst the pace of revenue growth is likely to slow in the second half, given in particular the weakening economic conditions in Europe, we still expect to make further progress in the remainder of the year.
“Notwithstanding the macroeconomic uncertainty, we continue to make good progress with the strategic development of the group, with increased investment in new products and emerging markets, and ongoing utilisation of a strong balance sheet in securing further value-enhancing acquisitions.”
During the first half the group saw good growth in both its Severe Service and Merchandising businesses with the rest of the group trading at broadly similar levels to last year.
Its Severe Service business saw revenues rise 17% to £326m (2011: £258m), while Merchandising was up 14% at £90m (2011: £79m).
Revenues in Fluid Power, Indoor Climate and Beverage Dispense were all down, with the group blaming the situation on weak demand in Europe.
The new board appointments follow the retirement of Kevin Beeston and the decision by executive director Ian Whiting to stand down.
Commenting on the changes Mr Quarta said: “I am delighted that Carl-Peter and Phil are joining the board. They both have tremendous international business experience and I am sure that we will benefit from their respective expertise as we strengthen and grow our businesses around the world.”
Mr Forster was heavily involved in the resurgence of Jaguar Land Rover prior to his decision to step down from his role at Tata earlier this year due to family commitments.
