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Smiths Group PLC on Wednesday raised annual guidance as it reported continued strong organic revenue growth in the second quarter of its financial year, ending January 31, noting growth across all its businesses.
The engineering firm now expects to deliver low double-digit percentage organic revenue growth for the first half and organic revenue growth of ‘at least’ 7% in the full-year to July 31, as well as ‘moderate’ margin improvement.
Back in November, Smith’s had guided for 4.0% to 4.5% organic revenue growth in financial 2023.
Smiths said uncertainty remains high, however, and supply chain snarls persist.
Its John Crane business is ‘ramping supply to service strong demand, and this has supported accelerated growth in both Energy and Industrials in the second quarter’.
Chief Executive Paul Keel said: ‘Our strategy of focusing on accelerating growth, improving execution and investing in our people continues to deliver increased value for all stakeholders.’
The company added that as at January 17, we have returned £647 million of the £742 million share buyback programme. It is now expected to complete by the end of financial 2023.
Smiths said it will publish interim results on March 24.
Revenue in the financial year that ended July 31 last year rose 6.8% to £2.57 billion from £2.41 billion. Pretax profit in financial 2022, however, fell 57% to £103 million from £240 million, as operating costs rose by 18% to £2.45 billion from £2.08 billion.
Shares were up 2.6% at 1,724.00 pence each on Wednesday morning in London.
By Xindi Wei, Alliance News reporter
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