REG - Smiths Group PLC - Smiths Group - Trading Update

SmithsAnnouncement

18/01/2023 07:00

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RNS Number : 0977N  Smiths Group PLC  18 January 2023

News Release

18 January 2023

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

 

SMITHS GROUP PLC

DELIVERING STRONG GROWTH AHEAD OF EXPECTATIONS,

RAISING FY2023 GUIDANCE

Smiths Group plc ("Smiths" or "the Group") today provides a pre-close trading
update for the six months ending 31 January 2023, and raises FY2023 guidance.

As set out in the November trading update, Smiths delivered 13.2% organic
revenue growth(1) in the first quarter.  Strong growth continues in the
second quarter, and the Group now expects to deliver low double-digit organic
revenue growth for the first half through a combination of volume growth and
price increases to offset cost inflation.  To support this growth and to
mitigate supply chain impacts, the Group continues to invest in working
capital.

While uncertainty remains high, and supply chain impacts persist, growth
continues across all businesses:

·    John Crane is ramping supply to service strong demand, and this has
supported accelerated growth in both Energy and Industrials in the second
quarter.

·    Smiths Detection continues to execute against its order book and is
expected to deliver strong growth in the first half, having benefited from a
very strong first quarter.

·    Flex-Tek's strong growth continues in both aerospace and
construction, although in line with macro-economic forecasts, we expect the
latter to slow in the second half.

·    Smiths Interconnect continues to deliver growth albeit below the
double-digit levels of last year.

Reflecting current momentum, Smiths is updating FY2023 guidance.  We now
expect organic revenue growth for the full year to be at least 7%, with
moderate margin improvement.

Paul Keel, Group Chief Executive, commented:

"Our strategy of focusing on accelerating growth, improving execution and
investing in our people continues to deliver increased value for all
stakeholders.  I credit our teams around the world for making this progress
possible and I look forward to providing further details when we share our
first half results on 24 March."

 

Share buyback

As at 17 January, we have returned £647m of the £742m share buyback
programme which was announced on 11 November 2021. At the current run-rate and
share price, the programme is now expected to complete by the end of FY2023.

 

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 M&A and 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

 

This announcement contains inside information.  The person responsible for
arranging the release of this announcement on behalf of Smiths Group plc is
Matthew Whyte, Company Secretary.

 

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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