IMI Share Price: Slight Rise in H1 Pretax Profit

on Aug 22, 2013
Listen Thursday, August 22nd: IMI Plc. (LON:IMI) today reported a slight rise in pretax profit and flat revenues for the six months ended June 30. The global engineering group, which specialises in fluid control systems such as valves and beverage dispensers, also announced the acquisition of Canada-based Analytical Flow Products (AFP).

Profit before tax improved slightly, registering a one percent increase to £170.1 million, despite the three-percent drop in organic revenue to £1.09 billion.
The Severe Service segment performed in line with the company’s expectations, recording an improved margin of 15.2 percent as compared with 14 percent in the first half last year despite a slight drop in revenues to £322 million. The business saw an encouraging rise in order intake with bookings up 19 percent on the year in the six months to June 30, IMI said in a statement.

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Revenues in the Fluid Power sector fell 3 percent during the period as the group had expected. The drop was mainly attributed to the lower commercial vehicle volumes compared with 2012.
Revenues from Indoor Climate and Beverage Dispense stayed almost unchanged, while Merchandising registered an increase from £70 million to £83 million with operating margin rising to 14 percent from 9.6

Earnings per share for the period were 34.5p compared with 31.8 for the first half of 2012. Adjusted earnings per share were 39.1p. The interim dividend to shareholders increased eight percent to 12.8p.
Roberto Quarta, IMI’s Chairman, said in the statement: “We also made good progress with our growth agenda launching several new products and continuing to improve our operational efficiency which will help drive future margin momentum.”

The group’s outlook for the rest of the year is positive based on expectations for better trading conditions. IMI’s shares have gained 28 percent this year. Following the release of the interim report investors traded IMI shares 5.32 percent up at 1,484.00p as of 10.01 BST on the London Stock Exchange.
**Acquisition of AFP**
!m[Engineering group acquires Canada-based AFP to expand product range and enhance R&D capabilities](/uploads/story/5014/thumbs/pic1_inline.gif)

IMI today announced the acquisition of AFP, a Canada-based company with an innovative range of products for the precise control of fluids in chromatography as well as for the testing of the purity of gases in refineries. IMI expects that the intensive sales network of its Fluid Power segment will substantially boost the distribution of these products.
The acquisition deal was completed at a price of £5 million, but additional deferred consideration of up to £36 million could be paid over the next five years.
**As of 10.38 BST buy IMI shares at 1,482.00p.**


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