IMI raises earnings and margins guidance

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IMI PLC (LON:IMI), the specialist engineering company, climbed 7.4% to 1,501p after its chief executive, Roy Twite, declared himself pleased with progress in 2021.

In its interim management statement, the company said revenues in the first quarter totalled £421mln, some 7.7% ahead of last year on a like-for-like and constant currency basis, and 2.6% ahead of the same period in 2019. The company included the 2019 comparison because last year’s performance was affected a bit by the coronavirus pandemic.

The company increased its full-year guidance range for earnings per share to 81-87p from 75-82p previously. The board added that it now has confidence IMI will become a sustainable 18% to 20% margin business over time. “Our updated plans aim to deliver 20% through-cycle margins for IMI Precision, while IMI Critical now sees sustainable 20% margins, and IMI Hydronic has 20%+ margin potential,” the company said.

10.05am: Tate & Lyle contemplating sweet deal

Tate & Lyle PLC (LON:TATE) confirmed media speculation it is thinking of selling its Primary Products businesses. The shares were up 6.5% at 806p in early deals.

The food ingredients company said it is contemplating selling a controlling stake in the Primary Products businesses to a new long-term financial partner, leaving the company focused on its Food & Beverage Solutions.

“Tate & Lyle continues to successfully execute its strategy and remains confident in the future growth prospects of the company; however, the board believes that if a transaction of this nature was completed it would enable Tate & Lyle and the new business to focus their respective strategies and capital allocation priorities and create the opportunity for enhanced shareholder value,” the company’s stock market statement said.

9.10am: Staffline trading ahead of expectations while React cleans up with another contract win

Staffline Group PLC (LON:STAF), up 15% at79.8p, was the top riser in London after it said first-quarter trading was ahead of expectations.

The recruitment and training group said the underlying operating profit in the first three months of 2021 was 133% higher than in the same period of last year.

Revenues and underlying operating profit are both ahead of expectations with all three of Staffline’s businesses units ahead of budget. Despite the hard national lockdown in the Republic of Ireland, Staffline Ireland also reported very positive momentum across the quarter, the company revealed.

React Group PLC (LON:REAT) jumped 14% to 2.9p after it landed a three-year contract with a facilities management firm.

The contract represents a material increase in business with one of REACT’s existing customers to provide cover to a portfolio of over 2,000 site locations throughout mainland Great Britain and specifies REACT as the core vendor, or vendor of choice.

The cleaning, hygiene and contamination company said it is difficult to place a value on the contract given the reactive nature of the work and the time required to replace the existing suppliers but the customer has historically spent in the region of £2mln per year on this specialist category of work, a figure that has expanded further due to COVID-19 and the result of the customer’s own success in growing its portfolio of clients.

Proactive news headlines

Live Company Group PLC (LON:LVCG) said it has signed a new contract with Naples Zoo in Florida, USA, for its BRICKLIVE Supersize tour which will take place from November 2021 to April 2022.

Induction Healthcare Group PLC (LON:INHC) notified that three prominent hospitals in the southeast of England have signed to use and deploy its Zesty patient appointment app.

Chaarat Gold Holdings Ltd (LON:CGH) produced 16,174 ounces of gold equivalent from its mine in Armenia during the quarter to 31 March 2021. All-in-sustaining costs rang in at US$1,024, a comfortable margin on the current gold price of over US$1,750. 

Ergomed PLC (LON:ERGO) said its PrimeVigilance business, a global provider of pharmacovigilance and medical information services, has established a new legal entity and regional office in Japan and is fully operational from today. 

Blackbird PLC (LON:BIRD) revealed that its cloud-based video editing platform is being used by 18 more US TV stations for digital news production following the latest TownNews deployment.

ANGLE PLC (LON:AGL, OTCQX:ANPCY) has completed patient enrolment of 200 women to its ovarian cancer clinical verification study.

IXICO PLC (LON:IXI) said revenues increased 8% and its order book rose to £19mln in the past six months despite the disruption caused by Coronavirus (COVID-19).

CentralNic Group PLC (LON:CNIC) confirmed the strong revenue and earnings figures for its 2020 financial year while also announcing plans to release a first-quarter trading update on June 1.

Seeing Machines Limited (LON:SEE) said it has added another top-notch vehicle manufacturer to its FOVIO Driver and Occupant Monitoring System customer list. Mass production is scheduled from late 2022 with an initial lifetime award value of A$7mln.

H&T Group PLC (LON:HAT) confirmed that it has posted its annual report and accounts for 2020 ahead of its annual general meeting on Thursday 20 May 2021. Shareholders are invited to send questions in advance. 

Bango PLC (LON:BGO) announced that its annual general meeting will be held on 26 May in Cambridge. Shareholders are encouraged to vote by proxy and are invited to call in and listen to proceedings of the meeting.

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