REG - Smiths Group PLC - Smiths Group Q1 Trading Statement

SmithsAnnouncement

11/11/2021 07:00

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RNS Number : 0142S  Smiths Group PLC  11 November 2021

 
 
 
News Release

London, 11(th) November 2021

For immediate release

 

 

Smiths Group Q1 Trading Statement

Smiths Group plc ("Smiths" or "the Group") today announces its trading
statement for the first quarter of FY2022.

Smiths delivered a good performance, in line with its expectations.  Revenue
for the three months ended 31(st) October for Continuing Operations(1) was up
1% on an underlying(2) basis. This reinforces the Group's confidence in
meeting its expectations for the full year; with underlying revenue growth
returning to around pre-COVID levels of 3%.

Three of the Group's four divisions delivered good growth in the first
quarter, with a decline in Smiths Detection as anticipated.

·      John Crane continues to see strengthening activity levels across
its Industrials and Energy market segments, with both aftermarket and original
equipment revenue now back in growth, underpinned by a strong order book.

·      Flex-Tek delivered strong growth driven by high demand in its
Industrials segment and the second consecutive quarter of growth in its
Aerospace segment.

·      Smiths Interconnect's growth reflects continued strong demand for
its connectivity solutions in the aerospace and communications markets.

·      As anticipated, Smiths Detection's performance reflects timing of
deliveries as well as the impact of the COVID pandemic on its end markets;
however, aftermarket activity is improving, and positive order growth gives us
confidence over the medium term.

Share buyback programme to begin imminently

On 8(th) September the Group announced its most significant portfolio change
in over a decade with the sale of Smiths Medical to ICU Medical, Inc. for an
enterprise value of $2.7bn.  The Group is making good progress towards faster
than expected completion of the transaction.  Accordingly, the Board has
decided to advance the previously announced return of 55% of the initial cash
proceeds to shareholders. The £742m share buyback programme is planned to
commence on 19(th) November, subject to shareholder approval and after next
week's Capital Markets Event.

As previously announced, the requirements of the U.S. Hart-Scott-Rodino
Antitrust Improvement Act have been satisfied and approval by Smiths'
shareholders is being sought at the General Meeting on 17(th) November.
Completion is now expected in early 2022 following satisfaction and/or waiver
of the remaining conditions.

Paul Keel, Chief Executive, commented:

"We are pleased with the continued progress we delivered through the first
quarter of FY2022.  While levels of recovery in our end markets differ and
supply chain challenges continue, the Group delivered a second consecutive
quarter of growth and a three-point acceleration versus Q1 FY2021.  This
supports our confidence in meeting our full year expectations of delivering
underlying revenue growth for the Group of around 3%.

The sale of Smiths Medical is progressing well and as such, subject to
shareholder approval, we plan to begin share buybacks on 19(th) November.

Looking ahead, we are focused squarely on acceleration - acceleration of
growth and acceleration of value creation.  We'll outline our plans for
faster growth at our Capital Markets Event on the 17-18(th) November."

(1) Continuing Operations exclude Smiths Medical which is accounted for as
'Discontinued Operations - businesses held for    sale'

(2) Underlying modifies headline performance to exclude the effects of foreign
exchange and acquisitions

 

 

END

 

 

 

 Investor enquiries           Media enquiries
 Jemma Spalton, Smiths Group  Alex Le May, FTI Consulting

+44 (0)20 7004 1600
+44 (0)20 3727 1308

+44 (0)7867 390 250
+44 (0)7702 443 312

jemma.spalton@smiths.com
smiths@fticonsulting.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, Security & Defence, and
Aerospace. Listed on the London Stock Exchange, Smiths employs c.22,000
colleagues in over 50 countries. For more information visit www.smiths.com
(http://www.smiths.com/) .

 

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