IMI PLC has released its preliminary results for the year ended 31 December 2023, showcasing strong organic growth, margin progression, and cash generation. The company reported a 7% increase in revenue, reaching £2,196m, and a 13% rise in operating profit to £411m. The adjusted operating margin also saw a significant increase of 90 basis points to 18.7%. The complexity reduction program delivered £20m of incremental benefits, and the operating cash flow surged by 26% to £366m. IMI's return on invested capital increased to 13.1%, and the proposed final dividend has been increased by 10% to 19.2p per share.
IMI's Chief Executive, Roy Twite, expressed satisfaction with the company's performance, highlighting the fourth consecutive year of profit and adjusted operating margin growth. He emphasized the company's purpose-led strategy, "Breakthrough engineering for a better world," and its focus on helping customers become safer, more sustainable, and more productive. Twite also mentioned that around 45% of sales are now generated from the aftermarket, and the company's sectors are aligned with attractive growth markets supported by long-term global macroeconomic trends.
The company's strong 2023 results have led to an optimistic outlook for 2024, with an expected full-year adjusted EPS between 120p and 126p. IMI anticipates further margin progression in 2024 towards its 20% through-cycle target. The company also plans to release its next Interim Management Statement on 9 May 2024.
IMI's financial performance improvements have led to the company rejoining the FTSE 100 index, a testament to the hard work of its employees. As part of its journey, IMI is consolidating under a unified IMI master brand while maintaining strong product brands within its sectors, simplifying engagement with customers, supporting growth ambitions, and uniting the company as one team.
The Board is recommending a 2023 final dividend of 19.2p per share, reflecting the company's confidence in its financial position and future prospects. Payment will be made on 17 May 2024 to shareholders on the register at the close of business on 5 April 2024.
IMI's outlook for 2024 reflects strong growth in its Automation platform, resiliency in its Industrial Automation sector, and expectations for continued margin progression. The company anticipates that Life Technology revenue will be down in the first half but expects it to be broadly flat in the full year.