IMI plc: history, ownership, mission, how it works & makes money

A Brief History of IMI plc

IMI plc, a British engineering company, was founded in 1862 as a manufacturer of brass products in Birmingham, England. The company evolved over the years, expanding its operations and product range significantly. By 1897, IMI started manufacturing gun components and later diversified into various sectors, including automotive, aerospace, and energy.

In the mid-20th century, IMI began a series of acquisitions that solidified its position in the engineering sector. The most notable acquisition was in 2004 when IMI plc acquired the Norgren Group, a leading manufacturer of pneumatic and fluid control products. This deal was valued at approximately £250 million.

As of 2022, IMI plc operated through three main segments: IMI Precision Engineering, IMI Critical Engineering, and IMI Hydronic Engineering. The company reported revenues of £1.5 billion for the fiscal year 2022, representing an increase of 8% from £1.39 billion in 2021. Operating profit for the same year was £240 million, a margin of approximately 16%.

In 2016, IMI plc implemented a three-year restructuring plan aimed at improving operational efficiency and focusing on high-growth markets. As a result, the company divested underperforming businesses and streamlined its operations. By 2019, IMI reported a continuous improvement in its financial metrics, achieving a return on capital employed (ROCE) of 16.5%.

In recent years, IMI has embraced digital transformation and sustainability initiatives. The company invested over £50 million in digital technologies and solutions to enhance its product offerings and customer engagement. IMI is committed to reducing its carbon footprint and aims to achieve net-zero emissions by 2040.

As of October 2023, IMI plc continues to expand its global footprint, with manufacturing facilities in key markets, including the United States, Germany, and China. The company remains resilient amid global market challenges, driven by its strong product portfolio and innovation strategy.

In its latest earnings report, IMI plc projected a revenue growth of 5-7% for 2023, supported by robust demand in the medical and renewable energy sectors.

The company's stock, traded on the London Stock Exchange under the ticker IMI, has shown a steady performance, with a year-to-date increase of 12% as of October 2023. The market capitalization of IMI plc is approximately £3.1 billion.

A Who Owns IMI plc

IMI plc, a British engineering company, operates in sectors such as fluid technology and precision engineering. Understanding the ownership structure of IMI plc is fundamental for investors and analysts looking to gauge the company's stability and growth potential.

As of the latest available data, IMI plc has a diverse shareholder base comprised of institutional investors, retail investors, and company executives. According to the 2023 Annual Report, the ownership breakdown is as follows:

Among institutional investors, several notable firms hold significant stakes. The three largest shareholders include:

IMI plc's shares are listed on the London Stock Exchange under the ticker symbol IMI. As of October 2023, the share price stands at approximately £18.50, giving the company a market capitalization of around £3.76 billion.

The company's annual revenue for the fiscal year 2022 was £2.2 billion, with a net income of £290 million. The earnings per share (EPS) for fiscal year 2022 was reported at £1.63.

In terms of dividends, IMI plc declared a total dividend of £0.62 per share for the fiscal year 2022, which represents a dividend yield of approximately 3.35% based on the current share price.

Shareholder engagement remains a critical aspect of IMI plc’s strategy. The company's commitment to maintaining transparent communication with shareholders is evident in its regular updates and performance reviews. The latest shareholder meeting in September 2023 saw a 78% approval rate for the proposed executive compensation plan.

Overall, the ownership structure of IMI plc reflects a well-distributed portfolio among institutional investors, which contributes to the company’s financial stability and growth trajectory.

IMI plc Mission Statement

IMI plc, a global engineering company specializing in fluid and thermal management, is dedicated to delivering innovative solutions that enhance the performance of its customers’ operations. The mission statement embodies the company’s commitment to sustainability, operational excellence, and creating value for stakeholders.

As of the latest financial reports, IMI plc aims to lead in the provision of advanced engineering solutions by focusing on several key areas:

• Customer centricity
• Innovative technology
• Sustainability and efficiency
• Strong operational performance

The company operates across various sectors including aerospace, energy, and healthcare, providing tailored solutions that meet specific demands. Their vision is also reflected in their financial performance and market strategies.

IMI plc's commitment to its mission is evident through its impressive financial growth, with a revenue increase of approximately 31.5% from 2021 to 2022. This growth trajectory indicates a strong market presence and effective operational strategies.

The company prioritizes sustainability, aiming to achieve net-zero carbon emissions by 2030. This initiative underscores its dedication to operational efficiency and environmental responsibility.

IMI invests significantly in research and development to drive innovation, reflecting a proactive approach to enhancing its product offerings. For instance, in 2022, the R&D expenditure amounted to £50 million, representing about 3.2% of total revenue, as the company focuses on developing advanced fluid and thermal management solutions.

Furthermore, the mission statement commits to fostering a culture of continuous improvement among employees while ensuring customer satisfaction and loyalty. The company has implemented various employee training programs, reflected in its employee retention rate of 89% in 2022.

In summary, IMI plc's mission statement is not merely a statement of purpose but a reflection of its operational ethos, strategic focus, and commitment to sustainable growth and innovation.

How IMI plc Works

IMI plc is a UK-based engineering company that specializes in advanced fluid technology. The company operates through three primary divisions: Fluid Power, Precision Engineering, and Heating. As of the end of 2022, IMI plc reported revenue of £1.6 billion and an operating profit of £246 million.

Divisional Breakdown

The company's divisions serve various sectors, including oil and gas, energy, and industrial markets. Below is the breakdown of revenue by division for the fiscal year 2022:

Market Presence

IMI plc operates globally, with significant operations in Europe, North America, and Asia. The geographic distribution of revenue in 2022 was as follows:

Financial Performance

For the year ending December 31, 2022, IMI plc reported the following financial metrics:

• Earnings per Share (EPS): £1.44
• Dividend per Share: £0.50
• Return on Capital Employed (ROCE): 17.2%

Strategic Initiatives

IMI plc has focused on sustainability and innovation in its operations. In 2022, the company allocated approximately £50 million towards research and development (R&D), which represented about 3.1% of its total revenue. Key areas of focus included electrification and digital solutions.

Stock Performance

As of October 2023, IMI plc's stock price stood at approximately £1,245, reflecting a year-to-date increase of 18%. The market capitalization was around £3.9 billion.

Acquisitions and Growth

In 2022, IMI plc acquired the German company, KPE, for £120 million. This acquisition aimed to enhance its capabilities in precision engineering and expand its market access in Europe.

Outlook

For the forecast period of 2023, analysts project an annual revenue growth rate of 5% for IMI plc, driven by increased demand in the energy and industrial sectors. The company is also expected to focus on operational efficiencies, with a target of reducing costs by 10% over the next three years.

How IMI plc Makes Money

IMI plc operates within the engineering sector, primarily focusing on fluid control, precision engineering, and sector-specific solutions. The company segments its revenue across three main divisions: Fluid Power, Precision Engineering, and Retail Dispense.

Revenue Breakdown

In 2022, IMI plc reported total revenues of approximately £1.493 billion, demonstrating a year-on-year growth of 9%. The breakdown of revenues by division is as follows:

Key Revenue Drivers

The Fluid Power segment specializes in products used in manufacturing and industrial applications, providing hydraulic and pneumatic components. In 2022, this division alone generated approximately £592 million in revenue.

Precision Engineering focuses on providing critical flow control solutions primarily used in the oil and gas, aerospace, and medical sectors. This division reported revenue of approximately £621 million in 2022.

Retail Dispense, which includes solutions for beverage dispensing systems, contributed around £280 million to IMI’s overall revenues. This sector has shown substantial growth, benefiting from the post-pandemic revival of the hospitality industry.

Geographical Revenue Distribution

IMI plc's revenue is also geographically diversified. In 2022, the revenue distribution by region was as follows:

Profitability Metrics

IMI plc has shown consistent profitability over recent years. For the fiscal year 2022, the company reported an operating profit of around £250 million, which translates to an operating margin of approximately 16.7%. Net profit for the same period was reported at approximately £200 million.

Strategic Initiatives and Future Outlook

IMI plc continues to invest in innovation and technology, with a focus on sustainable solutions and digital transformation. The company allocated around £50 million for research and development in 2022, aiming to enhance product efficiency and expand its market presence.

The forecast for 2023 suggests that IMI plc plans to increase its capital expenditure by approximately 10% to support growth and expansion into emerging markets, particularly in Asia.