As expected, IMI (IMI) is having a tough second half, with revenues down in two of the engineering group’s three divisions: critical and precision engineering. Soft industrial automation and commercial vehicle markets pose a persistent challenge for precision engineering, while its critical arm has been hampered by a slowdown in new construction work.
Yet the markets responded enthusiastically to new chief executive Roy Twite’s battle plan for IMI’s recovery, sending IMI shares up by around 7 per cent in morning trading. IMI is targeting £35m in savings in its precision outfit in addition to a previously-announced £35m group-wide rationalisation. The critical segment, meanwhile, has placed lower-margin businesses accounting for 20 to 30 per cent of revenue under review, highlighting that their products may fall below IMI’s long-term targets for growth and margins.
