TIDMSMIN
RNS Number : 6185T
Smiths Group PLC
16 November 2023
News Release
16 November 2023
SMITHS GROUP PLC - Q1 TRADING UPDATE
Pioneers of progress - improving our world through smarter
engineering
Tenth consecutive quarter of growth, FY2024 guidance
confirmed
Smiths Group plc ("Smiths" or "the Group") today announces its
trading statement for the first quarter of FY2024.
Smiths delivered organic(1) revenue growth of 3.5% for the three
months ending October 2023 against a
Q1 FY2023 comparator of +13.2%. The performance in the first
quarter was in line with the Group's expectations, and Smiths
confirms full year guidance of organic revenue growth within
its
medium-term target range of 4-6%, with continued margin
expansion.
-- John Crane made a strong start to the year with double-digit
organic revenue growth. Continued strong order growth supports a
positive outlook for the rest of FY2024.
-- Smiths Detection delivered high single-digit organic revenue
growth, with the full year outlook supported by a record orderbook.
Order growth in the first quarter was significant, with a major
contributor being two multi-year defence contracts for next
generation chemical and biological detection.
-- Flex-Tek's organic revenue declined mid-single digits with
weakness in the US heating, ventilation and air conditioning
market, partially offset by good growth in aerospace. Flex-Tek is
expected to return to growth in the second half. In August,
Flex-Tek acquired US-based Heating & Cooling Products for
GBP65m (<7X 2023E EBITDA), expanding its product range and
geographic coverage.
-- Smiths Interconnect's organic revenue and order decline
worsened in the quarter with double-digit contraction, reflecting
challenging market conditions, and impacting margins.
In the first quarter, Smiths also published its second
Sustainability Report which can be found here .
Paul Keel, Group Chief Executive, commented:
"We made a solid start to FY24, with +3.5% organic growth in the
quarter. We have now delivered ten consecutive quarters of growth,
underpinned by our strategy of accelerating growth, improving
execution and investing in our people. Our strong orderbooks in
John Crane and Smiths Detection and new product pipeline give us
confidence in delivering full year growth within our medium-term
target of 4-6%, despite record FY23 comparators, a moderating
pricing environment and softer market conditions in parts of
Flex-Tek and Smiths Interconnect.
My thanks to our employees around the world for your hard work
in delivering for our stakeholders.
I'd also like to thank Sir George Buckley for his decade of
chairmanship of Smiths, and subject to today's AGM, welcome Steve
Williams as the new Chair of the Board."
Upcoming events
Smiths will be holding its Annual General Meeting ("AGM"),
today, 16 November 2023. Sir George Buckley will retire as Chairman
and from the Board of Smiths at the conclusion of the AGM and,
subject to his election as a Non-executive Director, Steve Williams
will be appointed as Chair of the Board.
Smiths will host a John Crane Deep Dive event on 30 November
2023 for investors and analysts, focused on how John Crane is
implementing Smiths' strategy to create value for stakeholders in
energy and industrial end markets.
Smiths will publish its results for the six months ending 31
January 2024 on 26 March 2024.
(1) Organic revenue growth excludes the effects of foreign exchange
and M&A.
Investor enquiries Media enquiries
Siobhán Andrews, Smiths Tom Steiner, Smiths
Group Group
+44 (0)7920 230093 +44 (0)7787 415 891
siobhan.andrews@smiths.com tom.steiner@smiths.com
Ahmed Ammori, Smiths Group Alex Le May, FTI Consulting
+44 (0)7384 901695 +44 (0)7702 443 312
ahmed.ammori@smiths.com smiths@fticonsulting.com
Legal Entity Identifier (LEI): 213800MJL6IPZS3ASA11
About Smiths Group
For over 170 years, Smiths Group has been pioneering progress by
improving our world through smarter engineering. We serve millions
of people every year, to help create a safer, more efficient
and
better-connected world, across four major global markets:
Energy, General Industry, Safety & Security and Aerospace.
Listed on the London Stock Exchange, Smiths employs more than
15,000 colleagues in over
50 countries. For more information visit www.smiths.com .
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