IMI lifts full-year EPS guidance after strong Q3

IMI lifted its full-year earnings guidance on Tuesday as it hailed a strong third-quarter performance and announced the acquisition of Heatmiser, a UK-based smart room thermostat manufacturer.

In an update for the period from 1 July to 30 September, the specialist engineering company said it delivered another strong performance, with its seventh consecutive quarter of organic growth.

Q3 organic revenue growth was up 4% compared to the same period a year earlier, and 10% higher on an adjusted basis.

IMI said good momentum in its Growth Hub and Sprint Teams continues to drive growth and it now expects to deliver more than £40m of orders from these projects in 2022.

Given the continued momentum in the business and based on current market conditions, the group expects 2022 full-year adjusted earnings per share of between 103p and 106p, up from previous guidance of "in excess of 100p".

IMI also announced the acquisition of Heatmiser for an enterprise value of £110m. Heatmiser will become part of IMI Hydronic Engineering.

Chief executive Roy Twite said: "I am really pleased to announce the acquisition of Heatmiser, which is fully aligned to IMI's strategy of delivering significant shareholder value by solving industry problems and putting customers at the heart of what we do.

"This is an important, strategic entry point to the rapidly growing connected controls market, that will accelerate our organic growth across IMI Hydronic. There has never been more urgency to deliver energy efficiency and comfort in buildings, and Heatmiser is a leader in this space."