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Smiths Group PLC on Tuesday increased its revenue guidance amid an executive reshuffle, following the resignation of Chief Financial Officer Clare Scherrer. The London-based engineering company expects organic revenue growth between 6% and 8% in 2025, up from the previous guidance of 5% to 7%. This is above the firm’s medium-term target, Smiths said, reflecting ‘broad-based performance across the business, with particular strength versus expectations in Smiths Detection and Smiths Interconnect’. The operating profit margin guide is unchanged at a 40 to 60 basis point expansion. The announcement comes amid an executive reshuffle, with CFO Scherrer stepping down on January 31. Scherrer is succeeded by Julian Fagge, currently president of Smiths Interconnect Americas Inc. Fagge will take over as CFO and Executive Director on February 1, with Scherrer remaining until April 30 to oversee publication of half-year results, expected March 25. Fagge joined Smiths in 2013 as group financial controller, later becoming director of group strategy & mergers & acquistions. In 2019, he was appointed president of Smiths subsidiary Flex-Tek Group Ltd in 2019, and has led Smiths Interconnect since 2021. The chartered accountant has previously worked for Procter & Gamble Co and Royal Caribbean Cruises Ltd. Smiths Chair Steve Williams said Fagge was ‘ideally placed to become the new CFO’ given his track record at the company. Fagge’s appointment comes with an annual fixed grant of 102,500 Smiths shares, subject to performance measured over three years. Scherrer must maintain a stake in the company of at least 33,116 shares for two years post-employment. Smiths shares were up 0.7% at 1,743.60 pence each on Tuesday morning in London. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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