IMI PLC on Friday said it targeted continued margin progression as it reported higher profit and revenue for 2023, hiking its payout in response.

The Birmingham, England-based engineering company said pretax profit grew 6.0% to £302 million in 2023 from £285 million in 2022. Revenue climbed 7.2% to £2.20 billion from £2.05 billion.

IMI highlighted £20 million in cost savings from restructuring, with a further £15 million targeted for 2024 and £7 million for 2025.

IMI proposed a final dividend of 19.2 pence per share, bringing the total dividend to 28.3p, up 10% from 25.7p in 2022.

Chief Executive Officer Roy Twite said: ‘We continued to make significant progress in 2023 as we delivered our fourth consecutive year of profit and adjusted operating margin growth. Our purpose-led strategy, Breakthrough engineering for a better world, is accelerating performance as we continue to help our customers become safer, more sustainable, and more productive. We have a resilient portfolio with around 45% of sales now generated from the aftermarket, and our sectors are aligned to attractive growth markets supported by long-term global macroeconomic trends. Both our operating platforms increased revenues and margins in the year.’

Looking ahead, IMI expects 2024 adjusted earnings per share between 120p and 126p, at least 2.7% higher than 116.8p in 2023. It expects continued progress toward its 20% target for adjusted operating margin. In 2023, this had improved to 18.7% from 17.8% in 2022.

IMI shares were down 0.6% to 1,722.00 pence each on Friday morning in London.

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