- Engineering company IMI slashed its interim dividend for 2020 to preserve cash, and reinstated its 2019 final dividend following higher profit in the first half of the year.

The company cut its interim dividend 50% to 7.5p, and said the final 2019 dividend per share of 26.2p had also been reinstated.

'The interim distribution has been reset to reflect a dividend earnings cover baseline of 3.0x,' the company said.

The update on dividends came as the company reported higher profit in as margin gains offset a fall in revenue.

For the six months ended 30 June 2020, pre-tax profit rose 5% to £116m on-year as revenue fell 5% to £867m.

Margins improved 1% to 14%.

Based on current market conditions, and importantly no material changes in the second half of 2020, the company said it expected full-year 2020 adjusted earnings per share to be between 65p and 70p.

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