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Modest growth at IMI

RESULTS: IMI is a first-class operator and a strategic review could be a positive catalyst later this year, but quality does not come cheap
March 7, 2014

IMI (IMI), which is returning £620m to shareholders following two big disposals last year, expects only modest organic revenue growth in the first half of 2014. But a review undertaken by Mark Selway, the experienced Australian who took over as chief executive at the valves group just two months ago, has already thrown up "exciting organic and acquisition prospects".

IC TIP: Hold at 1462p

"I've been handed a deck of cards with a number of aces in it," Mr Selway told us, confirming that the first draft of a five-year plan is on his desk. IMI is already pulling its heating and cooling systems team out of 20 lower-margin emerging markets worth £4m of annual sales.

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