IMI plc reported a constructive trading update for the first quarter, delivering mid-single digit organic constant currency sales growth and confirming its full-year outlook. Group organic constant currency revenues rose 5% year-on-year in Q1, equivalent to 6% on a reported basis.
The company highlighted varied performance across its businesses. Process Automation produced a 6% increase in sales, despite a modest 1% decline in orders compared with a tough prior-period comparison. Industrial Automation also recorded 6% organic constant currency growth, recovering from a weak prior-year comparison period that had been affected by a cyber incident.
Life Technology grew organic constant currency sales by 4%. Within that division, Climate Control sales rose 4%, supported by strength in data centre demand and liquid cooling applications. Life Science and Fluid Control sales increased 1% on an organic constant currency basis, with the company citing resilient healthcare demand and signs of stabilisation in life science device markets.
The Transport business delivered the strongest gain, with organic constant currency sales up 9%. Management said a strategic review of the transport business has produced operational improvements, including working capital efficiencies.
On regional exposure and geopolitical risk, IMI described the impact of the Middle East conflict as limited. The company said the effect on orders and sales has been "not significant." Middle East revenues represent roughly 6% of group sales, with most of that exposure concentrated in Process Automation.
IMI reconfirmed its full-year earnings per share guidance range of 136p to 142p, reiterating the expectation of mid-single digit organic constant currency sales growth for the financial year. The guidance assumes that planned shipments to the Middle East will be delivered by the end of the year.
Overall, the Q1 update presents a picture of stabilising end markets in some areas and operational progress in others. For investors and industry watchers, the combination of continued organic sales growth and an unchanged EPS range suggests management sees the group on track to execute against its current plan, provided geopolitical shipments proceed as planned.