IMI PLC on Friday posted a drop in interim profit for the first half of 2022, as a result of costs related to restructuring and the company’s exit from Russia, more than offsetting revenue growth.

For the six months ended June 30, the Birmingham-based specialist engineering company posted a pretax profit of £120.9 million, a 1.5% drop from £122.8 million the same period a year prior.

IMI’s profit decline was attributed to costs related to the restructuring of the IMI Precision Engineering business, as well as a cost from the amortisation of acquired intangibles.

In addition, there was a £9 million charge associated with IMI’s decision to exit the Russian market.

On an adjusted basis, excluding the one-off costs, pretax profit rose 13% to £154 million.

Revenue meanwhile grew 7.2% to £972 million from £907 million, due to stronger revenue performances from Precision Engineering and Hydronic Engineering.

Precision Engineering segment revenue rose 18% to £485 million, aided by the recent acquisition of Adaptas, while Hydronic Engineering revenue increased 3% to £175 million through strong orders for automated control and actuation products.

IMI declared an interim dividend of 8.3 pence, up 5.1% from 7.9p a year before.

Adjusted net debt more than doubled to £760 million from £339 million.

Looking ahead, IMI said it continues to expect adjusted earnings per share to be at least 100 pence for 2022, compared to 79.7p in 2021.

‘We have made excellent progress with our purpose-led strategy during the first half. We are creating tremendous value for all our stakeholders by increasing customer intimacy, driving market-led innovation and reducing complexity,’ said Chief Executive Roy Twite.

‘We remain on track to deliver our long-term ambition of sustainable profitable growth and achieve our 20% margin target through the cycle,’ Twite added.

Shares in IMI were up 4.6% at 1,352.00 pence on Friday morning in London.

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