IMI plc, is a global engineering company listed on the London Stock Exchange and is a constituent of the FTSE250, the FTSE4Good Index and has a market capitalisation of £3.7bn.
Full year results to 31 December 2022 were published on 3 March and we were delighted to have Luke Grant, Head of Investor Relations and Group Financial Controller, and Edward Hann, Investor Relations Analyst, give an introduction to the company, present the FY22 results and outline the prospects for 2023 at a Yellowstone Advisory webinar. A recording of the webinar is available here.
The first part of the webinar covered an introduction to IMI and the second part covered the FY22 results and the investment case. IMI is £2bn revenue business with sites across the globe with a focus on valves and applications that control both motion and fluids. IMI products solve acute customer problems in niche applications in harsh environments with fine degrees of accuracy. The purpose is described as “Breakthrough Engineering for a Better World” and what they mean by this is helping companies reduce carbon emission, improve efficiency, operate more safely and improve productivity. The purpose was launched in 2019 and employee engagement has improved strongly over the last 3 years as staff have bought into the strategy. The company creates value by providing great service and customer satisfaction, developing innovative products in niche markets that meet customer needs and by reducing operating complexity.
IMI is made up of 3 divisions of which the largest is Precision Engineering which operates in the Industrial Automation, Life Sciences and Transportation segments. Critical Engineering operates mainly in the Energy market and Hydronic Engineering operates in the Indoor Climate segment.
Precision Engineering is the largest and most profitable division. The division manufactures products for motion and fluid control where precision, speed and reliability are essential. For example valves that control dosing which are used in intensive care unit ventilators or valves that go into braking systems on heavy duty trucks. A key product is the FAS Flatprop valve which goes into ICU ventilators and generated revenues of £100m during the pandemic. The division reported revenues of £986m, operating profits of £183m and an operating margin of 18.5% in 2022.
Critical Engineering manufactures products that help control the flow of steam, gas and liquids in harsh environments. These tend to be very large products, weighing several tonnes and an example would…
