IMI plc (IMIAF) 2024 Preliminary Results Call Transcript

2025-02-28 15:35:04 ET

IMI plc (IMIAF)

2024 Preliminary Results Conference Call

February 28 2025 4:00 AM ET

Company Participants

Roy Twite - Chief Executive Officer

Daniel Shook - Chief Financial Officer

Conference Call Participants

Christian Hinderaker - Goldman Sachs

Lush Mahendrarajah - J.P. Morgan

Andrew Douglas - Jefferies

Stephan Klepp - HSBC

Harry Philips - Peel Hunt

Mark Fielding - RBC Capital Markets

Presentation

Roy Twite

Good morning everybody, and welcome to IMI's 2024 Preliminary Results Presentation. I am joined here, as usual, by Dan Shook, our CFO.

And the first thing to say is that 2024 was another strong year for IMI, demonstrating the success of our growth strategy that we put in place five years ago. We delivered 4% organic sales growth and 10% organic adjusted operating profit growth. Adjusted operating margins were up another 100 basis points at 19.7%. And given the confidence we have in the business, we are increasing our medium term margin target to 20% plus.

Our return on invested capital remains strong and we had another good year of cash generation with more to come. In fact, over the next three years, we expect to generate in excess of £1 billion in free cash flow. We're also increasing the final dividend by 10% and given our disciplined approach to capital allocation, we're also announcing a further £200 million share buyback program.

Based on the current market conditions, we expect another year of strong financial and strategic progress in 2025. We expect full-year adjusted basic EPS to be between 129 pence and 136 pence after the share buyback, representing mid-single-digit organic revenue growth and margins above 20%.

Finally, a quick update on the cyber incident. I am pleased to confirm that IMI has returned to normal operations. We swiftly reacted to contain the threat, working alongside external cybersecurity experts to protect our business and further enhance our IT security. Dan will provide further details later in the presentation.

IMI is a global leader in fluid and motion control. We operate under a One IMI operating model targeted at delivering our financial framework. Since 2019, we have achieved this through disciplined execution, leveraging our world-class engineering expertise and applying our best practices in commercial excellence, market-led innovation and complexity reduction across our attractive growth markets.

Our business is aligned to three enduring mega-trends, automation, energy efficiency and healthcare demand. These underpin the delivery of sustainable, profitable growth. They also help us shape the future of fluid and motion control. ...

Read the full article on Seeking Alpha

For further details see: