IMI Q1 revenues rise amid strong order book growth

Specialist engineering group IMI reported a jump in first-quarter revenues on Thursday amid strong order book growth.

In the period from 1 January to the end of March, group revenues rose 9% compared to the same period a year earlier, while margins "also slightly improved".

Revenue growth in IMI Precision came in at 16% in the first quarter, including a strong performance from recent acquisition Adaptas.

Meanwhile, IMI Critical's order book at the end of March was broadly flat compared to a year ago on a like for like basis, now that it has removed the orders affected by its decision to exit the Russian market. The segment’s organic order intake in the first three months of the year was down 4% versus the same period in 2021, mainly due to timing of New Construction orders.

IMI Hydronic revenues rose 7% on an organic basis when compared to last year and the company said there continues to be strong demand for its energy saving solutions.

"Our teams continue to remain focused on our accelerated growth strategy through increasing customer intimacy, market-led innovation and reducing complexity," it said.

"These actions have allowed us to generate strong growth in the order book and revenues as well as improving margins, helping to mitigate the ongoing supply chain and inflationary pressures as well as Russian sanctions currently impacting global markets."

IMI also said on Thursday that it is in the process of divesting its Russian subsidiary to local management and this is expected to complete within the next weeks.

Based on current market conditions, the group continues to expect that 2022 full-year adjusted earnings per share will exceed 100p.

"IMI Precision and IMI Hydronic organic revenues are expected to be higher, with margins higher in IMI Precision and slightly higher in IMI Hydronic, consistent with our preliminary results announcement," it said. "IMI Critical revenue and operating margin are both expected to be in line with last year, despite the 4% revenue impact from the exit of Russia."