Engineering group IMI has raised its full-year dividend by 15 percent after seeing double-digit growth in both revenues and adjusted profits in 2011.
During the 12 months ended December 31st, revenue jumped 12% from £1,911m to £2,131m, ahead of expectations of £2,120bn. On an organic basis, adjusted for recent acquisitions and exchange rate movements, revenues rose 5% "reflecting improved trading conditions in most of our end markets," IMI said.
The Severe Service division saw revenue growth of 27%, as strong shipments of valves into liquefied natural gas (LNG) applications offset a weaker performance in Fossil Power, due to softer order intake in the second half of 2010, and in Nuclear, after the incident in Japan affected activity levels.
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Meanwhile, Fluid Power sales rose by 12%, while the sales growth in both Indoor Climate and Beverage Dispense was more subdued. Turnover was flat in Merchandising.
Meanwhile, adjusted pre-tax profit (before exceptional items such as restructuring costs and acquired intangible amortisation, etc.) increased by 19% from £304.4m to £363.4m, with the operating margin improving to 17.5% from 16.7% the year before.
Reported pre-tax profit however fell 2% to £301.4m.
The final dividend (per share) was increased by 12% to 19p, taking the total dividend to 30p, up 15% on last year's 26p payout.
"IMI has delivered another strong set of results in 2011 with good growth and record underlying profits, margins and earnings. In light of this performance, and our confidence in the future prospects for the business, we are pleased to propose an increase in the full year dividend of 15%," according to Chairman Roberto Quarta.
While the company acknowledged that the global macro-economic outlook remains uncertainty, it remains confident in accelerating further growth, improving margins further and delivering value-enhancing acquisitions.
"Based on current market conditions we remain optimistic that the group will make further progress in 2012."
Shares were up 2.06% in the opening minutes on Friday.
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