IMI PLC on Tuesday upgraded its full-year earnings outlook amid strong trading momentum, and proposed the acquisition of smart thermostatic control manufacturer, Heatmiser UK Ltd.
In the three months ended September 30, the Birmingham-based firm said it delivered ‘another strong performance’ of organic growth, with organic revenue up 4% against the previous year and 10% higher on an adjusted basis.
By division, IMI’s Precision recorded organic revenue growth of 3%, as did its Hydronic division. The firm’s Critical division, meanwhile, reported organic revenue growth of 6%.
The engineering company - which designs, manufactures and services products that control the precise movement of fluids - also noted ‘good’ momentum in its Growth Hub and Sprint Teams, with these projects now expected to deliver over £40 million in orders in 2022.
As a result of this momentum, and based on current market conditions, the firm upgraded its full-year earnings per share guidance to 106 pence per share from 103p previously.
The upgraded guidance comes as the firm announced its proposed acquisition of Heatmiser, the smart thermostatic control manufacturer, for an enterprise value of £110 million.
IMI said a further £8 million could be paid based on the acquisition’s future financial performance.
Heatmiser will become part of IMI Hydronic. IMI explained that Heatmiser would provide an ‘entry point into connected residential thermostatic control’ which it describes as a ‘fast-growing market’ in which Heatmiser is a ‘UK leader’.
‘There are also significant opportunities to leverage IMI Hydronic’s strong brand and market presence to scale Heatmiser’s offering across Europe, as well as leverage Heatmiser’s proven connected technology capabilities across existing and new IMI products,’ the company added.
In 2022, Heatmiser is expected to generate revenue of £22.5 million.
IMI will publish its full-year results on March 3.
Shares in IMI were up 2.4% at 1,351.00 pence on Tuesday morning in London.
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