Smiths Group PLC - Trading update & strategic restructuring
Smiths Continuing Operations
For the ten months ended
For the four months of the second half ended
The resilient overall performance of the last four months reflects the momentum of the first half and our strong orderbooks at the outset of the COVID-19 crisis. There has been some slowing, due to the impact on our operations and those of our customers; we also face increasingly tough comparators through the end of the fiscal year. We are currently operating in all our 75 manufacturing plants, but are not immune to higher consequential costs.
· After a good performance in the first half, Flex-Tek is being impacted by the downturn in commercial aerospace, as well as disruption to US construction. The rest of the business continues to perform well.
· Smiths Interconnect revenue was impacted in the first half by global connector market weakness, but more recently both orders and revenue have improved.
Underlying1 revenue growth in the second half to date was up +2%, with the pandemic driving increased critical care demand and restocking. However, lower volumes of non-COVID-19 procedures held back revenues later in the half.
Driving growth opportunities
The Group continues to drive growth opportunities made available by its technological, commercial and financial strengths.
Smith Detection has today announced a bolt-on technology acquisition (
Operating cash conversion has been strong and cash balances have increased from c.
Issued debt has an average maturity of over 4 years and no maturities before
In its trading statement on
Strategic restructuring programme
The Group announces today a strategic restructuring programme that will ensure it emerges stronger from the crisis and better able to deliver consistent outperformance. This will support the achievement of our goal to deliver operating margins of 18-20%.
The programme is Group-wide and has an operating cash cost of c.
"Market-leading positions and a flexible business model have enabled the Group to continue to perform through crisis disruption.
Our immediate focus is the safety of our people and business continuity for our customers. We will continue to take the actions necessary to safeguard our long-term competitiveness. I very much regret that this will result in some job losses. My sincere personal thanks go to the amazing Smiths employees around the world for their dedication and commitment.
The Group has a resilient business model; market-leading positions, a culture of innovation at its heart, combined with relentless execution. We are confident that we will meet the challenges of the current crisis - and emerge stronger, better able to outperform long-term."
Management will be holding a webcast call for analysts and investors at
1 Underlying modifies headline performance to adjust prior year to reflect an equivalent period of ownership for divested businesses, and excludes the effects of foreign exchange and acquisitions.
2 Continuing Operations exclude
Marion Le Bot,
Alex Le May,
Legal Entity Identifier (LEI): 213800MJL6IPZS3ASA11
Original high-resolution photography is available to the media from the media contacts above or from http://www.smiths-images.com/
This document contains certain statements that are forward-looking statements. They appear in a number of places throughout this document and include statements regarding the intentions, beliefs and/or current expectations of
This information is provided by RNS, the news service of the
Quick facts: Smiths Group
Market Cap: £5.71 billion
NO INVESTMENT ADVICE
The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...FOR OUR FULL DISCLAIMER CLICK HERE