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

Credit Suisse comment:
"Maintain O/P with 1,440p TP despite another 2.5% EPS cut. On the back of a Detection-driven 6% H2 FY14 EBITA miss, we reduce our FY15 and FY16 EPS estimates by c2.5%. This comprises a c5% underlying cut, ½ offset by FX. Our estimates incorporate a small buffer for future potential negatives as we discount $1.64/£ across the group and an additional -£5m impact on Detection for price/mix. Our SOTP-driven TP remains at 1,440p.
Detection charges escalated in Q4. Detection generated a small loss in H2 (vs £30m EBITA in H1 and our £12m H2 forecast), impacted by c£30m of one-offs comprising further WC writedowns, higher programme delivery costs and provisions, exacerbated by deteriorating price/mix and falling volumes. For FY15, we now discount flat top line development, non-repeat of the £30m of one-offs and a further £5m headwind for price / mix (c1% of sales). New management have now concluded a detailed review of the business and are confident on it finding a sustainable earnings base, from which to make progress in the medium-term.
Solid progress elsewhere. The rest of the group delivered H2 EBITA inline with our expectations and our estimates there remain overall unchanged (despite higher central costs but helped by FX). John Crane outlook remains positive and the new all-time high profitability is largely sustainable (we forecast 24.5% for FY15-16). For Medical, we expect a flat FY15 with internal measures fighting the external headwinds such as pricing. Interconnect and Flex Tek outlook remains solid."

StockMarketWire.com
Smiths Group said expectations for the year remain in line with the outlook given at the full year results.

"Foreign exchange translation and transaction are expected to have an adverse impact of c.3% on the Group's first half headline operating profit," said chairman Sir George Buckley in a statement to be read at the company AGM today.

"However, this headwind is expected to reverse during the second half if current exchange rates are maintained. More generally, as previously guided, the Group's underlying performance will be weighted towards the second half.

"In the three months to 1 November 2014, underlying revenue and headline operating profit at Smiths Group fell as expected against the first quarter last year as growth in Smiths Medical was more than offset by declines in Smiths Detection and Smiths Interconnect.

"John Crane revenues and headline operating profit were broadly similar to last year's first quarter. Headline operating cash conversion was strong for the first quarter at 94%."

Harry, can you put a chart in the header please.

There is one, though I can do a better one! (I think their chart server is down as the chart sometimes doesn't load.)

Sorry - charts are hit and miss this morning - it didn't load last time.

StockMarketWire.com
Smiths Detection, part of global technology business Smiths Group, has won a contract worth $125m to provide a comprehensive range of advanced detection equipment for Abu Dhabi Airport's new terminal.

In one of its biggest single airport orders, Smiths Detection will equip the terminal's entire hold baggage and passenger screening checkpoints as part of the Midfield Terminal Building Project.

Richard Ingram, president of Smiths Detection, said: "This contract win highlights our success in supplying advanced, integrated security solutions that meet the operational needs of our customers while delivering long-term value. We look forward to consolidating our already close partnership with such an important and rapidly expanding hub airport."

StockMarketWire.com
Smiths Group said expectations for the year remain in line with the outlook presented at the interim results. In the nine months to 2 May 2015, underlying revenue and headline operating profit for the Group fell slightly against the prior year.

This reflects continued like-for-like revenue growth in Smiths Medical and Flex-Tek offset by declines in Smiths Detection, Smiths Interconnect and John Crane. Headline operating cash conversion was strong at 96% for the year to date.

Underlying trading at John Crane in the first nine months was slightly below the equivalent period last year as a result of difficult market conditions in some parts of the energy segment.

Overall aftermarket revenues grew driven by continued demand from mid and downstream customers, despite further declines from our small upstream artificial lift business. Sales to first-fit rotating equipment customers also fell in line with our expectations.

The deterioration in third quarter trading conditions resulted in a mid-single digit decline in John Crane revenue for the quarter. At constant currencies, full year revenues are expected to decline modestly. However, cost saving initiatives and favourable product mix should support operating profit margins.

Smiths Medical continued to deliver underlying revenue growth in the third quarter although, as expected, the growth rate has slowed. Underlying revenue growth in the first nine months of the year has been driven by strong demand for ambulatory infusion pumps while the vital care and safety device franchises have shown smaller gains driven by general anaesthesia and sharps safety products respectively.

Headline operating profit continued to benefit from higher volumes and cost saving initiatives despite an increased headwind from transactional foreign exchange. We expect continued revenue growth in the full year results, although the growth rate will be slower than the first half.

Smiths Detection delivered underlying growth in headline operating profit in both the third quarter and year to date against a weak comparator that was affected by £12m of non-recurring charges.

Despite challenging trading conditions across many markets, which resulted in lower underlying revenue for the year to date, we continue to make good progress in implementing business improvement and cost cutting initiatives.

These are contributing to an improved outlook for headline operating profit margin this year and strengthening our competitive positioning. As previously guided, full year revenue is expected to be below last year.

Headline operating margins are likely to improve for the year against a comparator affected by one-off costs. The order book for delivery in FY16, coupled with the benefit of our cost savings, points to an improved performance in next financial year.

Smiths Interconnect continued to face challenging trading conditions. Underlying revenue fell in the quarter, following the year to date trend, due to ongoing delays in customer spending in wireless telecoms, programme slowdowns and further softness in several markets served by Connectors and Microwave, such as defence and medical.

The decline was slightly offset by growth in data centres. While we expect some improvement in trading in the fourth quarter compared with the first nine months, full year revenue and headline operating profit will remain below prior year levels.

Flex-Tek reported a sustained improvement in underlying revenue and headline operating profit. Revenue growth was driven by continued progress in Heat Solutions and Construction revenues offsetting some weakness in Flexible Solutions. The outlook for the full year remains positive and in line with previous guidance.

At 2 May, net debt was £915m, slightly reduced from the £929m at 31 January 2015.

Annual results for the year ended 31 July 2015

Highlights
· Headline EPS up 5% and continued strong headline operating cash conversion at 95%

· Smiths Medical delivered highest revenue growth in almost a decade

· John Crane aftermarket strength underpinned a resilient performance

· Smiths Detection achieved margin improvement and strengthened order book

· Difficult trading conditions at Smiths Interconnect; continued positive results from Flex-Tek

· Increased investment in growth initiatives through Engineered for Growth programme

· Net accounting pension deficit reduced to £108m - its lowest reported level since 2008

"While Group revenues fell 2% with tougher trading in Smiths Interconnect, Smiths Detection and John Crane, headline operating margin rose on a recovery in profitability at Detection as management action strengthened its business performance. Smiths Medical achieved its highest revenue growth in almost 10 years helped by innovation in infusion pumps and some competitor disruption. John Crane delivered a resilient performance supported by its robust business model, focused on aftermarket services. Smiths Interconnect reported lower revenues with continued tough trading conditions; the impact on operating profit was exacerbated by the division's high operational gearing. Flex-Tek benefited from continued growth in US residential construction, specialty heating elements and aerospace demand..

"Over the last eight years, we have increased our investment in revenue growth opportunities through investment in innovation, expansion in emerging markets and better sales & marketing effectiveness. Our Fuel for Growth restructuring programme is on track and has generated £33m of annual savings which were largely reinvested in growth initiatives as part of our Engineered for Growth plans.

"Looking ahead, our investment initiatives are building a solid foundation to accelerate medium-term revenue growth. We see positive momentum in Smiths Medical, Smiths Detection and Flex-Tek, albeit against the backdrop of continuing global economic uncertainty. John Crane is likely to experience further pressures from lower capital expenditure by energy services customers, although the aftermarket services business is expected to prove more resilient. Smiths Interconnect is expected to see modest improvement in some of its commercial markets. Overall, the phasing of group results is expected to be slightly more weighted towards the second half than usual."
Philip Bowman
Chief Executive

Jefferies International today reaffirms its buy investment rating on Smiths Group PLC (LON:SMIN) and cut its price target to 1100p (from 1300p).

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).