Smiths Group (LON:SMIN) today announced that management expectations for the full year remain unchanged, based on its first quarter performance.
Revenue for the three months ended 31 October for Continuing Operations1 was up 11% on an underlying2 basis. This reflected:
· Continued good growth in John Crane in both original equipment and aftermarket.
· Strong growth in Smiths Detection, helped by previously announced contract wins and a low comparator.
· Organic growth in Flex-Tek from both aerospace and industrial applications.
· Expected performance at Smiths Interconnect, including the impact of a slowdown in the semiconductor market.
For the full year, Smiths Group expects year on year growth to be weighted towards the first half and to result in a more even balance in overall performance between the first and second halves of the year.
Revenue for the three months ended 31 October for Smiths Medical, recorded as Discontinued Operations, was up 2% on an underlying2 basis. The previously announced planned separation of Smiths Medical is progressing well and is on track to be completed by the end of H1 CY2020.
In October 2019, Smiths Interconnect completed the acquisition of Reflex Photonics for an enterprise value of CAD$40m. Reflex’s technological leadership in ruggedized fibre optics is critical to demanding applications in defence, space, aerospace and industrial market segments.
1 Continuing Operations exclude Smiths Medical which is accounted for as ‘Discontinued Operations – businesses held for distribution to owners’, given the intended separation of Smiths Medical by the end of the first half of CY2020.
2 Underlying modifies headline performance to adjust prior year to reflect an equivalent period of ownership for divested businesses and excludes the effects of foreign exchange, acquisitions and supplemental sales for divested businesses.