Smiths Group has five divisions - John Crane, Smiths Medical, Smiths Detection, Smiths Interconnect and Flex-Tek. They are focused on the threat & contraband detection, medical devices, energy, communications and engineered components markets worldwide. Customers range from governments and their agencies, to hospitals, petrochemical companies and equipment manufacturers and service providers in various sectors around the world.

http://www.smiths-group.com/about-smiths-group.aspx

Deutsche Bank today reaffirms its buy investment rating on Smiths Group PLC (LON:SMIN) and cut its price target to 1240p (from 1250p).

StockMarketWire.com
Smiths Group has posted a lower H1 pretax profit of GBP189m, from GBP208m. Interim dividend was 13.25p a share, from 13p. Revenue came in lower at GBP1.37bn, from GBP1.42bn.

Operating profit was GBP217m, from GBP232m. Smiths said both revenue and headline operating profit were in line with expectations. The company's FY expectations remained unchanged.

CEO Andy Reynolds Smith said:
"I am confident that we can unlock substantial value through improving our operational efficiency, which will generate resources to invest in growth. Overall, the Group will drive simplification and speed to promote adaptability and innovation.

"From a trading perspective, this is a solid set of results. Group performance in the first six months of the year demonstrated the benefits of our range of end market exposures.

"As expected, John Crane was down in the first half, in persistently tough oil and gas end markets, but we benefited from growth in profits at Smiths Medical and Smiths Detection.

"Good progress has been made to improve Smiths Detection's competitive positioning through initiatives on value engineering, programme management and aftermarket servicing, which are clearly having a positive impact on the bottom line.

"Against a tough prior year comparator, Smiths Medical delivered another strong performance as it benefited from consumables sales for its expanded installed base of infusion pumps. Performance at Smiths Interconnect and Flex-Tek was in line with expectations.

"As previously stated, Group performance is anticipated to be slightly more weighted to the second half than usual. We expect global energy markets to remain challenging in the second half of the year, and are taking action to ensure that John Crane remains well positioned in an uncertain environment.

"I expect Smiths Medical to deliver a similar revenue performance in the second half, driven by growth in Infusion Systems and Vital Care.

"Smiths Medical's margins should benefit further from the effect of operational efficiencies and restructuring actions. Smiths Detection's strong order book underpins anticipated higher levels of sales growth in the second half, although the margins seen in the first half will moderate somewhat given contract mix and investment in new business capabilities. Our expectations for the full year remain unchanged."

Interim results for the six months ended 31 January 2017


Strong operational performance, further progress on strategic initiatives

Key points

Group headline revenue in line on an underlying1 basis; up 18% on a reported basis
Group headline operating profit up 8% on an underlying1 basis; up 27% on a reported basis
Cash conversion strong at 115% with a 44% increase in free cash flow
Headline basic EPS up 30% at 45.7 pence per share
Proposed interim dividend of 13.55 pence per share, up 2.3%
Operational improvements support increased R&D investment in long-term growth opportunities
Balance sheet strengthened by business disposals and improved pension funding
Morpho Detection acquisition in final stages, with approval and completion expected shortly
1 Underlying excludes the impact of acquisitions and divestments, and the effects of foreign exchange translation



Interim results for the six months ended 31 January 2017
Headline* Statutory
2017
£m 2016
£m Reported growth Underlying growth 2017
£m 2016
£m
Revenue 1,616 1,372 18% 0% 1,617 1,372
Operating profit 277 217 27% 8% 377 183
Operating margin 17.1% 15.8% 130 bps 150 bps 23.3% 13.3%
Pre-tax profit 248 189 31% 10% 346 168
Basic EPS 45.7p 35.2p 30% 76.5p 32.8p
Headline free cash-flow 252 174 44%
Dividend 13.55p 13.25p 2.3% 13.55p 13.25p
Return on capital employed 16.3% 15.4% 90 bps

JP Morgan Cazenove today reaffirms its overweight investment rating on Smiths Group PLC (LON:SMIN) and raised its price target to 1730p (from 1612p).

Ex-divi Thurs 19th Oct (29.7p)

StockMarketWire.com
Smiths Group has agreed to sell its John Crane's Bearings business to private Austrian company Miba for an enterprise value of $35m.

The transaction was subject to the satisfaction of certain regulatory conditions and was expected to complete by the end of March, Smiths Group said.

"The divestment is part of the ongoing corporate programme to concentrate the portfolio on scalable market leading positions in the company's chosen markets," it added.

Proceeds would be reinvested in "attractive growth opportunities", Smiths Group said.

StockMarketWire.com
Engineering company Smiths Group posted a 28% fall in annual profit after a regulatory suspension of some of its products in Europe and the loss of US customers hurt its medical division.

The company also announced it had sold the medical division's sterile water bottling business to Amsino Healthcare for an enterprise value of $40m.

Pre-tax profit for the year through July fell to £435m, as revenue slipped 2% to £3.21bn.

The company declared annual dividends of 44.55p, up 3% on-year.

On an 'headline underlying basis', which stripped out impacts such as currency movements, revenue for the year rose 2%, while pre-tax profit fell 8%.

Smith Group's operating margin fell 110 basis points to 16.9%.

'In the 2019 financial year we anticipate at least sustaining the rate of underlying revenue growth,' chief executive Andy Reynolds Smith said.

'As in previous years, group performance is expected to be weighted towards the second half.'

'Foreign exchange will provide a tailwind to reported revenue and operating profit, if current rates prevail.'

The company said it would also continue to pursue 'active portfolio management' after it recently pulled a deal to sell its medical division on valuation grounds.

JP Morgan Cazenove today downgrades its investment rating on Smiths Group PLC (LON:SMIN) to neutral (from overweight) and cut its price target to 1660p (from 1690p).