- IMI confirmed Friday Roy Twite would replace Mark Selway as CEO Friday and reported results that topped market expectations as profits grew 18% despite weakness in its new construction power segment. But the company said it expects slowing demand in the industrial automation sector to weigh on revenues.

Mark Selway had confirmed that he intended to step down as Chief Executive immediately following the company's Annual General Meeting on 9 May 2019, IMI said.

For the 12 months to 31 December 2018, statutory pre-tax profit rose 18% to £213m from £181m a year earlier and revenue rose 9% to £1.91bn.

'We delivered results ahead of market expectations and continued to execute our strategy effectively. In the year we reported increases in revenues, margins and earnings per share and enhanced our competitive capabilities,' the company said.

Trading conditions across the company's three divisions continued to be mixed throughout 2018 with 'growth in IMI Precision Engineering's end markets offsetting declines in New Construction Fossil Power and Energy markets in IMI Critical Engineering,' the company said.

In IMI Precision Engineering, the core Industrial Automation and Commercial Vehicle markets, which represent half of company's revenue, saw revenues rise by 16% to £916m for the year, form £791m a year earlier.

IMI critical engineering segment grew revenues 5% to £682m from £648m a year earlier, but the company said it expected first half organic revenues and profits in 2019 to be lower when compared to 2018.

IMI Hydronic Engineering's saw revenues fall 1% to £309m.

The company recommended an increase in the final dividend of 3% to 26.2p, taking total dividends for the year to 40.6p, an increase of 3% over last year's 39.4p.

'In the first half of 2019 we expect organic revenues to be lower than the same period in 2018 due to the phasing of Critical Engineering's order book and slowing market demand in the Industrial Automation sector in Precision Engineering,' the company said.

'Margins are expected to be broadly similar, supported by our operational initiatives and an improved performance from Hydronic Engineering. Results for the full year will also reflect the benefits of restructuring and our normal second-half bias.'

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