IMI interims boosted by demand for ventilator parts

Engineer IMI posted a rise in interim profit on Friday, thanks in part to a temporary surge in demand for ventilator parts due to the coronavirus pandemic, and said it was reinstating its full-year dividend.

In the six months to the end of June, adjusted pre-tax profit increased 5% to £116m, while revenue dipped 5% to £867m. Basic earnings per share were up 5% to 33.6p and the company’s interim dividend halved from the first half of last year to 7.5p a share. IMI also said it will reinstate its full-year dividend.

The company said lower volumes in most businesses were partly offset by a temporary surge in ventilator component sales.

Chief executive Roy Twite said: "As a result of the robust profit and cashflow performance in the first half, we are revisiting two decisions taken earlier in the year. Firstly, our decision to suspend the 2019 final dividend payment has now been reversed, and we will make that payment in full.

"We will also reset our dividend for 2020 to a level that enables IMI to more effectively deliver on its long-term growth ambitions. Finally, IMI is reinitiating guidance with this announcement, albeit on a qualified basis given the continued uncertainty regarding any future impacts from the coronavirus."

Twite said that based on current market conditions and assuming no worsening of the current Covid-19 impact, adjusted earnings per share for 2020 should be between 65p and 70p.