IMI lifts guidance after strong rise in H1 profits

Engineering firm IMI lifted full-year earnings guidance after a strong rise in interim profits.

The company on Friday reported an 18% rise in pre-tax profits to £137m as revenue increased 5% to £907m. The interim dividend was lifted to 7.9p a share, up from 7.5%.

IMI said it now expected full year adjusted EPS to be in the range of 85p - 90p as it benefited from positive market conditions within key business segments including Industrial Automation, Commercial Vehicle and Construction.

It added that new products were playing an increasing role in the group's growth.

“Like most industrials, IMI is seeing supply chain constraints for certain components and raw material cost inflation,' the company said.

“These are being managed well, minimising any impact on service levels to our customers. Where necessary, we continue to pass-through input cost increases to maintain margin progression.”