# Smiths Group Continuing Operations up 11%

- Link: https://www.directorstalkinterviews.com/smiths-group-continuing-operations-up-11/412797999
- Published: 2019-11-13T07:41:36+00:00
- Author: Amilia Stone

**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 Operations^(1) was 
up 11% on an underlying^(2) 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 underlying^(2) 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._

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