British engineering big cap IMI’s preliminary results were met with a lukewarm reception by the market this Friday, despite evidencing a “strong end” to the year with guidance looking “solid”, per Stifel’s analysis.
Statutory revenues gained 7% £2.2 billion, though operating margins fell 10 basis points to 14.5%, attributed to what the group called a “complexity reduction programme”.
Profit after tax rose 5% to £237.3 million, while return on invested capital improved from 12.7% to 13.1%.
The board recommended a final dividend of 19.2p per share, compared to 17.4p per share in 2022.
Net debt at the year-end was £639 million, compared to £812 million at the end of the previous year, reflecting strong cash generation.
IMI said its adjusted earnings per share (EPS) for the current year should be between 120p and 126p, compared to this year’s results of 116.8p.
Despite hitting the right notes, shares initially dipped 2.3% lower to 1,706.46p.
The stock has since climbed back to 1,727p, around 1% lower from yesterday’s close.