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

SmithsAnnouncement

16/11/2023 07:00

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RNS Number : 6185T  Smiths Group PLC  16 November 2023

News Release

16 November 2023

 

 

SMITHS GROUP PLC - Q1 TRADING UPDATE

Pioneers of progress - improving our world through smarter engineering

 

Tenth consecutive quarter of growth, FY2024 guidance confirmed

 

Smiths Group plc ("Smiths" or "the Group") today announces its trading
statement for the first quarter of FY2024.

Smiths delivered organic(1) revenue growth of 3.5% for the three months ending
October 2023 against a

Q1 FY2023 comparator of +13.2%. The performance in the first quarter was in
line with the Group's expectations, and Smiths confirms full year guidance of
organic revenue growth within its

medium-term target range of 4-6%, with continued margin expansion.

·    John Crane made a strong start to the year with double-digit organic
revenue growth. Continued strong order growth supports a positive outlook for
the rest of FY2024.

·    Smiths Detection delivered high single-digit organic revenue growth,
with the full year outlook supported by a record orderbook. Order growth in
the first quarter was significant, with a major contributor being two
multi-year defence contracts for next generation chemical and biological
detection.

·    Flex-Tek's organic revenue declined mid-single digits with weakness
in the US heating, ventilation and air conditioning market, partially offset
by good growth in aerospace. Flex-Tek is expected to return to growth in the
second half. In August, Flex-Tek acquired US-based Heating & Cooling
Products for ~£65m (<7X 2023E EBITDA), expanding its product range and
geographic coverage.

·    Smiths Interconnect's organic revenue and order decline worsened in
the quarter with double-digit contraction, reflecting challenging market
conditions, and impacting margins.

In the first quarter, Smiths also published its second Sustainability Report
which can be found here
(https://www.smiths.com/sustainability/reports-and-policies) .

Paul Keel, Group Chief Executive, commented:

"We made a solid start to FY24, with +3.5% organic growth in the quarter. We
have now delivered ten consecutive quarters of growth, underpinned by our
strategy of accelerating growth, improving execution and investing in our
people. Our strong orderbooks in John Crane and Smiths Detection and new
product pipeline give us confidence in delivering full year growth within our
medium-term target of 4-6%, despite record FY23 comparators, a moderating
pricing environment and softer market conditions in parts of

Flex-Tek and Smiths Interconnect.

My thanks to our employees around the world for your hard work in delivering
for our stakeholders.

I'd also like to thank Sir George Buckley for his decade of chairmanship of
Smiths, and subject to today's AGM, welcome Steve Williams as the new Chair of
the Board."

 

 

Upcoming events

 

Smiths will be holding its Annual General Meeting ("AGM"), today, 16 November
2023. Sir George Buckley will retire as Chairman and from the Board of Smiths
at the conclusion of the AGM and, subject to his election as a Non-executive
Director, Steve Williams will be appointed as Chair of the Board.

 

Smiths will host a John Crane Deep Dive event on 30 November 2023 for
investors and analysts, focused on how John Crane is implementing Smiths'
strategy to create value for stakeholders in energy and industrial end
markets.

 

Smiths will publish its results for the six months ending 31 January 2024 on
26 March 2024.

 

 (1) Organic revenue growth excludes the effects of foreign exchange and
 M&A.

 

 Investor enquiries                                               Media enquiries
 Siobhán Andrews, Smiths Group                                    Tom Steiner, Smiths Group

 +44 (0)7920 230093                                               +44 (0)7787 415 891

 siobhan.andrews@smiths.com (mailto:siobhan.andrews@smiths.com)   tom.steiner@smiths.com

 Ahmed Ammori, Smiths Group                                       Alex Le May, FTI Consulting

+44 (0)7702 443 312
 +44 (0)7384 901695
smiths@fticonsulting.com

 ahmed.ammori@smiths.com (mailto:ahmed.ammori@smiths.com)

Legal Entity Identifier (LEI): 213800MJL6IPZS3ASA11

 

About Smiths Group

For over 170 years, Smiths Group has been pioneering progress by improving our
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 more than 15,000 colleagues in over

50 countries. For more information visit www.smiths.com
(http://www.smiths.com/) .

 

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