IMI lifts dividend as annual profits grow

Engineering group IMI reported a rise in full-year profits and revenue on Friday and hiked its dividend as it said all three divisions had achieved organic revenue growth.

In the year to the end of December 2022, adjusted pre-tax profit was 13% higher at £346m, while revenue was up 10% at £2bn. Operating profit grew 14% to £364m.

The dividend per share was lifted 8% to 25.7p and IMI said the order book was "resilient", up 14% during the year.

All three divisions - Precision Engineering, Critical Engineering and Hydronic Engineering - delivered increased organic revenue and adjusted operating margins in the year.

Chief executive Roy Twite said: "We continued to make significant progress in 2022, delivering our third consecutive year of profit and margin growth.

"We remain confident in delivering sustainable profitable growth and a 20% group operating margin through the cycle over time. Based on the strong 2022 results and current market conditions we expect 2023 full year adjusted EPS to be around 111p."