March 1, 2019 / 7:36 AM / 9 months ago

Engineering firm IMI's full-year profit rises 9 percent

(Reuters) - UK-based specialised engineering company IMI Plc reported higher full-year profit and revenue on Friday, driven by strong demand for services in the petrochemical industry and the European construction market.

The company’s shares were up 4.6 percent at 9.90 pounds.

IMI hiked its full-year dividend by 3 percent and said Roy Twite would succeed Mark Selway as the company’s chief executive officer.

The company also forecast lower organic revenue in the first half of 2019, hit by slowing demand in the industrial automation sector.

On an adjusted basis, IMI’s pretax profit rose 12 percent to 251 million pounds for the year ended Dec. 31, while revenue was up 9 percent at 1.91 billion pounds.

The company, whose operations in UK account for less than 5 percent of its total sales, expects full-year results to improve in the second half of the year as it benefits from restructuring certain divisions.

IMI, which provides services for the energy and infrastructure sector, said it was increasing inventory levels in anticipation of any border controls or delays ahead of Brexit.

The FTSE 250 company had flagged in November about difficulties in managing its business due to tariff-related uncertainties.

Reporting by Karina Dsouza in Bengaluru; Editing by Shounak Dasgupta

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