Smiths Group PLC (LSE:SMIN) has raised its guidance for its 2023 financial year after reporting continued record growth in the half-year.
The FTSE 100-listed engineering company said revenue grew by 25.6% to £1.49bn in the six months to 31 January 2023, compared to £1.19bn for the same period a year earlier.
Smiths also reported a headline operating profit of £241mln, compared to £189mln the year prior, with margins growing by 20 basis points to 16.1%.
As a result, it now expects at least 8% organic revenue growth for the year with “moderate” margin improvement, the firm said in its interim results statement.
“With order books healthy and trading strong, we are again raising our financial year 2023 organic revenue growth guidance to at least 8%, with moderate margin improvement,” noted Smiths' chief executive Paul Keel in the statement.
Tailwinds for the rest of the year include a strong order book and trading trends, the new product strategy working well and savings projects improving speed and operating leverage, the company said.
However, the group also believes certain headwinds lie ahead, which include supply chain challenges and geopolitical and macro uncertainty.