IMI : Interim Results

Accelerating business performance includes early impact of transformational Growth Hub

On track for sustainable, profitable growth and Group margins of 18% - 20%

Purpose and ESG agenda unlocking opportunities and motivation across the Group

Interim results, six months ended 30 June 2021

	Adjusted1	Statutory
	H1 2021	H1 2020	Change	Organic3	H1 2021	H1 2020	Change
Revenue	£907m	£867m	+5%	+8%	£907m	£867m	+5%
Operating profit	£142m	£121m	+17%	+24%	£123m	£102m	+21%
Operating margin	15.7%	14.0%	+170bps		13.6%	11.8%	+180bps
Profit before tax	£137m	£116m	+18%		£123m	£94m	+31%
Basic EPS	39.9p	33.6p	+19%		31.3p	27.3p	+15%
Operating cash flow2	£111m	£107m	+4%
Interim dividend per share	7.9p	7.5p	+5%
Net debt	£339m	£420m

¹ Excluding the effect of adjusting items as reported in the income statement. See note 2 for definitions of alternative performance measures.
² Adjusted operating cash flow, as described in note 11 to the financial statements.
³ After adjusting for exchange rates (see note 3).

Key points

• 8% organic sales growth, 24% organic adjusted operating profit growth
• Adjusted operating margin improved by 170bps in first half
• Increased revenue, profits and margins across all three divisions
• Growth Hub and Sprint Teams transforming our culture and delivering early orders
• £101m delivered to shareholders via dividends and buybacks
• Interim dividend increased by 5%
• FY 2021 guidance increased to adjusted EPS of 85p to 90p, including buyback impact

Roy Twite, Chief Executive, said:

'We continue to make excellent progress with our strategy to increase customer intimacy, drive market-led innovation and reduce complexity. The Growth Hub and Sprint Teams are well embedded in each division and driving an important cultural change across the organisation as IMI focuses on growth. There are around 30 teams developing solutions to acute customer problems, with several already advancing into business scale-up phase. We remain on track to deliver our long-term ambition of sustainable profitable growth and Group margins of 18% to 20%.'

Based on the strong first half result and current market conditions we now expect 2021 full year adjusted EPS to be in the range of 85p to 90p. This guidance reflects our expected average share position in 2021 of approximately 268 million shares, resulting from the ongoing share buyback.

Enquiries to:

John Dean	IMI	Tel: [phone]
Stephen Malthouse	Headland PR	Tel: [phone]

A live webcast of the analyst meeting taking place today at 08:30am (BST) will be available on the investor page of the Group's website: www.imiplc.com. The Group plans to release its next Interim Management Statement on 4 November 2021.

To read the full press release in Acrobat PDF format please click here