Smiths Group (LSE:SMIN) PLC reported its fastest organic growth in nearly a decade as it continues to manage cost inflation and monitor the macro-environment.
The FTSE 100 engineer said revenues for the year to 31 July 2022 were up to £2.5bn, representing organic growth of 3.8%, while headline operating profits grew to £417mln from £372mln.
Smiths is also “actively” managing cost inflation through productivity programmes and pricing actions, it said in a statement.
As a result, the group expects to deliver 4% to 4.5% organic revenue growth for the current financial year, thanks to “strong order books and leading market positions” that support sustained momentum.
However, the group said certain challenges will continue, such as macroeconomic and geopolitical uncertainty, as well as supply chain issues.
“Despite an uncertain macro environment, we expect to deliver 4.0-4.5% organic revenue growth with moderate margin improvement,” said chief executive Paul Keef.
“By focusing on our top priorities of growth, execution, and people, we are creating value for our customers, colleagues, communities and investors. Together, we're building an ever-stronger future for Smiths.”
Smiths is paying a final dividend of 27.3p, bringing the total dividend for the year to 39.6p, a year-on-year increase of 5%.