Accelerating Better World growth
Strong organic growth, margin progression and cash generation
Expect further progress in 2024

Preliminary results, year ended 31 December 2023

Adjusted1

Statutory

2023

2022

Change

Organic4

2023

2022

Change

Revenue

£2,196m

£2,049m

+7%

+6%

£2,196m

£2,049m

+7%

Operating profit

£411m

£364m

+13%

+10%

£319m

£298m

+7%

Operating margin

18.7%

17.8%

+90bps

14.5%

14.6%

-10bps

Profit before tax

£387m

£346m

+12%

£302m

£285m

+6%

Basic EPS

116.8p

105.5p

+11%

91.5p

87.6p

+4%

Operating cash flow2

£366m

£290m

+26%

£439m

£336m

+31%

Dividend per share

28.3p

25.7p

+10%

28.3p

25.7p

+10%

Return on invested capital3

13.1%

12.7%

+40bps

1 Excluding the effect of adjusting items as reported in the income statement. See Note 1 for definitions of alternative performance measures.

2 Adjusted operating cash flow, as described in Note 1 to the financial statements. Statutory measure is Cash generated from operations as shown on the cash flow statement.

3 Post-tax return on invested capital, as described in Note 1 to the financial statements.

4 After adjusting for acquisitions, disposals and exchange rates (see Note 1).

Key points

  • 7% sales growth, 12% adjusted profit before tax growth
  • Adjusted basic earnings per share 11% higher than 2022
  • Complexity reduction programme delivered £20m of incremental benefits
  • Adjusted operating margin up 90bps to 18.7%
  • Statutory profit before tax increased by 6%
  • Significant growth in operating cash flow to £366m
  • Return on invested capital increased to 13.1%
  • Record Process Automation order book provides momentum into 2024
  • Proposed final dividend of 19.2p, increased by 10%
  • Unified IMI under one brand

Roy Twite, Chief Executive, said:

"We continued to make significant progress in 2023 as we delivered our fourth consecutive year of profit and adjusted operating margin growth. Our purpose-led strategy, Breakthrough engineering for a better world, is accelerating performance as we continue to help our customers become safer, more sustainable, and more productive. We have a resilient portfolio with around 45% of sales now generated from the aftermarket, and our sectors are aligned to attractive growth markets supported by long-term global macroeconomic trends. Both our operating platforms increased revenues and margins in the year.

By harnessing our engineering expertise, addressing customer challenges, fostering market-led innovation, and reducing complexity in our business, we are creating real value.

Based on the strong 2023 results and current market conditions we expect 2024 full year adjusted EPS to be between 120p and 126p."

Enquiries to:

Luke Grant

IMI

Tel: +44 (0)7866 148 374

Matt Denham

Headland

Tel: +44 (0)7551 825 496

A live webcast of the analyst meeting taking place today at 8:30am (GMT) 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 9 May 2024.

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

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IMI plc published this content on 01 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 March 2024 11:12:36 UTC.