IMI contains direct impact of Covid-19 in Q3

Specialist engineering company IMI said on Wednesday that it had managed to contain the direct impact of the Covid-19 pandemic.

IMI said its "strategic market-led innovation programme" continued to gain traction across all divisions throughout the three months ended 30 September, with initial orders won on a number of its early growth accelerator projects.

The FTSE 250-listed firm added that good progress was being made with its restructuring initiatives and stated it remained on track to deliver its targeted structural savings of £30.0m for 2020.

IMI stated overall trading in the third quarter had been "somewhat better" than previous expectations, with revenues for the period being just 1% lower on an organic basis when compared to 2019 and, when including the impact of foreign exchange movements and acquisitions, flat on an adjusted basis.

"The results were supported by additional surge sales within our ventilator business of £40m in the third quarter," said IMI.

"We now estimate the full-year effect of this ventilator demand surge will be a one-off revenue benefit of £85m, versus the expectation of £70.0m reported in our July half-year results."

Based on current market conditions, the resilient trading of the third quarter, and no significant escalation of coronavirus-related disruption, IMI now expects full-year 2020 adjusted earnings per share of 74.0p to 78.0p.

As of 0810 GMT, IMI shares were down 0.28% at 1,063.0p.