Share Prices & Company Research

Market News

26 Mar 2021 | 07:02

Smiths ups dividend after first-half profit drops

(Sharecast News) - Smiths Group increased its interim dividend and said it was confident about meeting expectations for annual results after profit fell in the first half. Headline operating profit fell 11% to £166m in the six months to the end of January as revenue declined to £1.15bn from £1.24bn. The FTSE 100 engineer increased its interim dividend by 6% to 11.7p and said trading was improving in the second half.

Headline operating profit fell 20% to £81m at Smiths' John Crane business, its biggest division. Revenue dropped 14% to £410m as energy businesses hit by plunging oil prices and Covid-19 disruption cut spending. Smiths said John Crane's orders were improving and the business secured multiple new contracts during the first half.

Revenue fell at all Smiths' businesses except the interconnect division where income rose to £152m from £140m and headline operating profit almost doubled to £19m.

Chief executive Andy Reynolds Smith said: "This is a robust set of results relative to our end markets, with a resilient top line, good profit conversion and excellent cash generation. Whilst economic uncertainty remains, against the backdrop of our robust first half performance and the improving second half trends, the group is confident of meeting market expectations for the full year and delivering long-term sustainable value."

Get in touch today
Join Redmayne Bentley
Talk to us now about opening a new account or transferring your account from another provider
0113 243 6941
Get in touch today
Contact your local office
Contact your local office to find out more
The value of your investments and the income from them may go down as well as up, and you could get back less than you invested.
Continuing our Personal Service: View our Latest COVID-19 Update: 30th April 2021
We use cookies on this site to improve your experience and help us provide you with a better website. An explanation of the cookies we use and their purpose can be found within our Cookie Policy. Your continued use of this site means you consent to the use of cookies.