- Disappointing half year results caused mainly by weakness at its detection unit, which make products such as X-ray scanners and its medical businesses, which makes equipment such as ventilators and drips. In the detection business, it said that revenue was distorted by variable order flow - particularly in ports and borders. For disposable medical goods, it noted: "The economic downturn has adversely affected hospital capital budgets, which in turn is having a dramatic impact on hospital purchases of hardware or capital items."
- Stripping out favourable currency effects, group sales fell 3%, with pre-tax profits 17% lower at £159 million in the six months to January 31.
- Net debt had increased by 26pc to £975m, apparently mostly driven by currency effects.
- The company froze its interim dividend at 10½p and said that it was focusing on rebuilding its dividend cover.
- Pension deficit has soared from £11m in July to £464m at the end of January. Smiths said the increase in the deficit was due to the fall in global equity values, and warned that liabilities would have increased further since the end of the half year, since the Bank of England's quantitative easing had caused discount rates to fall.
- Chief executive Philip Bowman said full-year results would be in line with expectations, while Smiths' resilience in tougher markets "augured well" for the future.
- Evolution analyst Nick Cunnigham's view is that "the results were in line but the underlying was weak and very mixed.. The weak detection results were a bit of a shock even given the IMS warnings but should get better in the second half." Evolution has suspended its target price and rating until it has new forecasts.
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