The x-ray device maker anticipates a headline effective tax rate of 27.5% to 28.5% for the year ending July 31, including one-time charges related to adverse revaluation of the deferred tax position.
READ: Smiths Group posts solid growth in reported profits, revenue, but underlying growth more constrained
Looking ahead to 2019 and beyond, the company expects a headline effective tax rate in the range of 23% to 25%.
By late morning, Smiths Group were up 5%, or 78p at to 1,645.5p.
In a note to clients, analysts at Numis Securities trimmed their rating for the stock to ‘add’ from ‘buy’, pointing out that a price/earnings valuation for 2019 of 16x in line with the sector suggests a target price of 1,725p.
They added: “Key for the shares remains kick-starting growth in the Medical division which management has suggested will commence in H2 2018.”
-- Adds broker comment, updates share price --