REG - Smiths Group PLC - Smiths Group plc - Q1 Trading Update

SmithsAnnouncement

09/11/2022 07:01

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RNS Number : 7475F  Smiths Group PLC  09 November 2022

News Release

9 November 2022

 

 

SMITHS GROUP PLC - Q1 TRADING UPDATE

Pioneers of progress - improving our world through smarter engineering

 

Strong first quarter showing continued progress on growth strategy

Smiths Group plc ("Smiths" or "the Group") today announces its trading
statement for the first quarter of FY2023.

Following a strong FY2022, as expected Smiths further accelerated growth in
the first quarter of FY2023, delivering +13.2% organic(1) revenue growth for
the three months to the end of October 2022. This positive start to the year
reinforces the Group's confidence in its full year guidance of 4-4.5% organic
revenue growth with moderate margin improvement, balancing strong business
momentum with continued macro uncertainty, supply challenges and stronger
comparators through the rest of the financial year.

All businesses delivered organic revenue growth in the first quarter:

·    John Crane posted steady growth in the quarter, with growth across
both its Energy and Industrials segments. Order growth remains strong, but
supplier shortages also continue, impacting revenue conversion.

·    Smiths Detection delivered strong growth across both Aviation and
Other Security Systems supported by its large order book and benefitting from
phasing of deliveries in the first quarter. The good start to the year
reinforces the guidance of a return to growth for the full year.

·    Flex-Tek delivered continued strong growth in the quarter. Growth in
our aerospace business remains strong, as does growth in our construction
business, although consistent with market forecasts, we expect this to
moderate as the year progresses.

·    Smiths Interconnect delivered solid growth for the quarter. Growth in
our semiconductor business remains strong, although consistent with market
forecasts, we expect this to moderate as the year progresses, balanced by
continued growth in satellite communications.

Paul Keel, Group Chief Executive, commented:

"We are pleased with our strong start to the fiscal year, building on a
successful FY22 and maintain guidance of 4-4.5% organic revenue growth with
moderate margin improvement for FY23. My thanks to our committed and talented
teams around the world who continue to navigate macro challenges to deliver
for our customers.

We are executing well against the strategy we outlined last fall and look
forward to providing further details on our progress at our Capital Markets
Event tomorrow, the materials for which will be posted on our website."

Share buyback

As at the end of Q1, we have returned £617m of the £742m share buyback
programme which was announced on 11 November 2021. At the current run-rate and
share price, the programme is expected to complete in early calendar 2023.

HY2023 results

Smiths will publish its results for the six months ending 31 January 2023 on
Friday 24 March 2023.

 

 (1) Organic revenue growth excludes the effects of foreign exchange.

 

 Investor enquiries                                                     Media enquiries
 Jemma Spalton, Smiths Group                                            Tom Steiner, Smiths Group

+44 (0)7867 390 350

jemma.spalton@smiths.com                                              +44 (0)7787 415 891


                                                                        tom.steiner@smiths.com

 Stephanie Heathers, Smiths Group                                       Alex Le May, FTI Consulting

+44 (0)7702 443 312
 +44 (0) 7584 113 633
smiths@fticonsulting.com

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

Legal Entity Identifier (LEI): 213800MJL6IPZS3ASA11

 

About Smiths Group

For over 170 years, Smiths Group has been pioneering progress by improving the
world through smarter engineering. We serve millions of people every year, to
help create a safer, more efficient and better-connected world, across four
major global markets:  Energy, General Industry, Safety & Security and
Aerospace. Listed on the London Stock Exchange, Smiths employs over 14,700
colleagues in over 50 countries. For more information visit www.smiths.com
(http://www.smiths.com/) .

 

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