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Interim Results

Smiths Group boosts H1 pretax profit, revenue, divi

24 March 2017 07:16

Smiths Group has boosted its first-half pretax profit and revenue by double-digit percentages, as well as lifting its dividend, accompanied wiht an unchanged outlook for full-year 2017.

"In the past six months we have made good progress to focus our portfolio and run our businesses better," said chief executive Andy Smith.

He said strong cash conversion and improved margins across the group provided it with additional resources to invest for the future.

"By laying the foundations for organic growth through targeted investments and by taking a disciplined approach to acquisitions and disposals, we are building a bigger, better and more focused Smiths," he added.

Pretax profit was £248m, up 31% from £189m, with revenue coming in at £1.6bn, up 18% from £1.4bn. Interim dividend was 13.55p a share, up from 13.25p.

"Overall, the outlook for 2017 is unchanged," said the CEO, Smith.

"Group performance is expected to be slightly weighted towards the second half, albeit with a more balanced split between the first and second half than we saw last year."

Smith expected some improvement in Smiths Medical's revenue performance in the second half.

John Crane's first-fit end markets were expected to remain tough, somewhat counterbalanced by continued resilience in aftermarket.

"We anticipate sales growth at Smiths Detection in the second half, albeit at lower levels than we saw in the first half, and margins will moderate given contract mix and investment in new products," he said.

Smiths Interconnect and Flex-Tek were expected to continue to perform in line with the first half.

"We expect cash conversion to continue to be strong as the rate of progress on inventory management improves. The depreciation of sterling is expected to provide a tailwind to reported revenue and operating profit, should current rates prevail."

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Related Company: SMIN

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