REG - Smiths Group PLC - Appointment of CFO and upgraded FY2025 guidance

SmithsAnnouncement

14/01/2025 07:00

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RNS Number : 1648T  Smiths Group PLC  14 January 2025

14 January 2025

SMITHS GROUP PLC

 

Appointment of Chief Financial Officer and upgraded FY2025 guidance

 

Smiths Group plc ("Smiths" or "the Group"), announces that Clare Scherrer,
Chief Financial Officer ("CFO"), has informed the Board of her decision to
retire from Smiths. She will remain as CFO until 31 January 2025 and will
continue to support a smooth and orderly handover through the H1 FY2025
results until she leaves on 30 April 2025.

 

Reflecting the Board's robust succession planning process, Julian Fagge,
currently President of Smiths Interconnect, has been appointed as the Group's
CFO and as an Executive Director to succeed Clare. Julian will take on his new
responsibilities with effect from 1 February 2025. Julian is a highly regarded
leader at Smiths, with broad financial, strategic and commercial experience.

 

Julian joined the Group in 2013 as Group Financial Controller and was
appointed as Group Strategy and M&A Director in 2017. In addition, he has
successfully led two of the Group's businesses, being appointed President of
Flex-Tek in 2019 and then Smiths Interconnect in 2021. Prior to joining
Smiths, Julian was Finance Director for UK and Ireland at Royal Caribbean
Cruises and before this, he worked for 12 years at Procter & Gamble.
Julian is also a non-executive Director for NASCIT plc. He qualified as a
chartered accountant.

 

FY2025 Trading Update

 

The Group is upgrading guidance for full-year organic revenue growth to 6-8%,
from the previously increased 5-7% guidance, and above our medium-term organic
revenue growth target. This reflects broad-based performance across the
business, with particular strength versus expectations in Smiths Detection and
Smiths Interconnect during Q2 FY2025, and improved visibility in our full-year
order book. Guidance on operating profit margin is unchanged at a 40-60 basis
point expansion in FY2025, underpinning our confidence in delivering the
Group's medium-term margin target, supported by delivery of the Acceleration
Plan. Further information will be provided with the FY2025 Half Year results,
due to be released on 25 March 2025.

 

Steve Williams, Chairman of Smiths Group, said: "Julian is a proven leader
within Smiths Group and ideally placed to become the new CFO of Smiths. He has
a deep understanding of our businesses, end markets and customers, and he has
a strong financial, commercial and strategic background. Together, our CEO
Roland and Julian have more than 45 years of experience at Smiths, have run
three of our four businesses and have an unparalleled knowledge of the Company
and its growth and value drivers.

 

"On behalf of the Board, I would like to thank Clare for her significant
contribution to Smiths Group. She has played an important role in our growth
story over the last three years, and we wish her all the very best."

 

Roland Carter, Chief Executive of Smiths Group, said: "Julian becomes our CFO
at a very exciting time as we continue to drive sustainable growth, as
evidenced by today's upgrade. Julian has a strong track record of strategic
execution. I would personally like to thank Clare for all she has done for
Smiths and her support since I became CEO. Clare has played an important role
in delivering the success we have collectively achieved in recent years. I
wish her all the best for the future."

 

Julian Fagge said: "It is a great privilege to be appointed as the new Smiths
CFO. Having worked across the business in a number of roles, I am excited
about the future and I look forward to supporting Roland, the Board and the
leadership team in achieving our strategic, financial and operational
objectives for the benefit of all our stakeholders."

 

Clare Scherrer said: "I am very proud to have served as Smiths Group's CFO. It
has been an honour to have worked with so many talented and passionate
colleagues. The future for Smiths is bright and I look forward to seeing the
Group continue to go from strength to strength."

 

Additional Executive Committee changes

 

The Group also announces today other changes to its Executive Committee:

·    Bernard Cicut, President of John Crane, is also retiring. Bernard
will be succeeded by Ruben Álvarez, a 27-year veteran of John Crane who is
currently Vice President of Portfolios and Customer Operations.

·    Julian Fagge will be succeeded by Vera Parker, currently Chief People
Officer, as President of Smiths Interconnect.

·    Kini Pathmanathan will become Chief People, Sustainability &
Excellence Officer.

·    These appointments will all take effect on 1 February 2025. Details
of the new Executive Committee will be available on our website.

 

Remuneration arrangements for Julian Fagge and Clare Scherrer

 

Julian's remuneration on appointment: Julian will receive an annual salary
of £625,000; a payment in lieu of pension at 12% in line with
the UK workforce; a bonus opportunity of 180% of salary (with one
third of any earned bonus deferred into shares for three years); an LTIP
award with an annual grant of a fixed number of shares of 102,500 shares,
subject to performance conditions measured over a three-year period with a
further two-year holding period. Julian will also be entitled to other
benefits in line with the Group's current Directors' Remuneration Policy.

 

Julian's employment contract requires 6 months' notice of termination by him
and 12 months by the Company. The Company may also terminate his employment by
making a payment in lieu of notice in respect of any unserved period of
notice.

 

Clare's remuneration on stepping down from the Company:

The below information is provided in accordance with section 430(2B) of the
Companies Act 2006.

 

Further to Clare's retirement, she will be paid her salary and payment in lieu
of pension until 30 April 2025. In line with Smiths Directors' Remuneration
Policy, she will be treated as a 'good leaver' for incentive purposes. Clare
has three outstanding LTIP awards as set out below which will vest at the
normal vesting dates, three years after grant with a further two-year holding
period, on a pro-rated basis and subject to satisfaction of the LTIP
performance criteria.

 

 LTIP Award  Vesting date  Number of Shares  Pro-rating  Adjusted shares
 FY23        Oct 2025      91,342            33/36       83,730
 FY24        Oct 2026      102,303           21/36       59,676
 FY25        Oct 2027      110,000           9/36        27,500

 

Clare will also receive a pro-rated (9/12) FY25 AIP bonus payment in October
2025, subject to satisfaction of performance criteria. One-third of the AIP
bonus will be deferred into shares for three years. Clare will also retain
three Deferred Bonus Plan awards, with 2,009, 13,303 and 12,457 share awards
being released in October 2025, October 2026 and October 2027 respectively.
Clare is also required to maintain a post-employment shareholding of at least
33,116 shares for two years post-employment. Clare will remain subject to the
Group's malus and clawback arrangements.

 

This announcement is made pursuant to LR 6.4.6 of the Listing Rules. Smiths
Group confirms there is no further information to be disclosed under the
requirements of LR 6.4.8 of the Listing Rules in relation to Julian's
appointment.

 

Legal Entity Identifier (LEI): 213800MJL6IPZS3ASA11

 

ENDS

 

IR contacts

Stephanie Heathers, Smiths
Group
Siobhán Andrews, Smiths Group

+44 (0)7584
113633
+44 (0) 7920 230093

stephanie.heathers@smiths.com (mailto:stephanie.heathers@smiths.com)
 
Siobhan.andrews@smiths.com (mailto:Siobhan.andrews@smiths.com)

 

Ana Pita da Veiga, Smiths Group

+44 (0)7386 689442

ana.pitadaveiga@smiths.com

 

Media contacts

Tom Steiner, Smiths
Group
Alex Le May, FTI Consulting

+44 (0)7787
415891
+44 (0)7702 443 312
tom.steiner@smiths.com (mailto:tom.steiner@smiths.com)
 
Smiths@fticonsulting.com (mailto:Smiths@fticonsulting.com)

 

Company Secretary

Matthew Whyte

+44 (0) 7775 982879
matthew.whyte@smiths.com (mailto:matthew.whyte@smiths.com)

 

 

About Smiths Group

 

For over 170 years, Smiths has been pioneering progress by engineering a
better future. We serve millions of people every year, to help create a safer,
more efficient and productive, and better-connected world across four global
markets: energy, safety & security, aerospace & defence, and general
industrial. Listed on the London Stock Exchange, Smiths employs c.15,000
colleagues in over 50 countries. For more information visit www.Smiths.com
(http://www.smiths.com)

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