Smiths Group to launch share buyback after disposal and strong quarter

(Alliance News) - Smiths Group PLC on Thursday said it has delivered a good performance in the third quarter of 2021, in line with its expectations.

In addition, Smiths said it is planning to launch a GBP742 million share buyback programme on Friday next week, after the quicker-than-expected sale of its Medical unit. Back in September, the company agreed to sell Smiths Medical to ICU Medical Inc for USD2.7 billion.

On Thursday, Smiths said it is making good progress towards faster than expected completion of the transaction.

The London-based engineering company said revenue for the three months ended October 31 from continuing operations was up 1% on an underlying basis. Smiths said three of its four divisions delivered good growth in the first quarter of its current financial year, with a decline only in Smiths Detection.

Smiths Detection's performance reflects the timing of deliveries, as well as the impact of the Covid pandemic on its end markets, the FTSE 100-listed company explained.

Smiths said its Flex-Tek unit delivered strong growth, driven by high demand in its Industrials segment and the second consecutive quarter of growth in its Aerospace segment.

John Crane also continued to see strengthening activity levels across its Industrials and Energy market segments, with both aftermarket and original equipment revenue now back in growth, underpinned by a strong order book, Smiths said.

Smiths Interconnect continued to experience strong demand for its connectivity solutions in the aerospace and communications markets.

For the full financial year ending July 2022, Smiths Group expects to achieve underlying revenue growth at around pre-Covid levels of 3%.

"Looking ahead, we are focused squarely on acceleration - acceleration of growth and acceleration of value creation," said Chief Executive Paul Keel.

Smiths Group shares were trading 1.5% lower in London on Thursday at 1,430.00 pence each.

By Evelina Grecenko; evelinagrecenko@alliancenews.com

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