(Alliance News) - Smiths Group PLC on Thursday said it achieved a "robust" performance for the financial 2020, despite reporting a sharp fall in profit.
Shares in the FTSE 100-listed company were down 6.4% at 1,341.50 pence each in London. Year-to-date the stock has shed 21% in value.
Revenue from continuing operations for the year to July 31 was up 2% to GBP2.55 billion, though down 1% on an underlying basis. Pretax profit more than halved to GBP133 million, however, from GBP304 million the year before.
Smiths Group said profit was hit by lower volumes in the second half as well as additional costs to support business continuity, and the firm also took GBP31 million in restructuring costs and GBP24 million of write-downs.
The defence and medical technology company said its guidance remains withdrawn, given Covid-19 uncertainty, though it said total group underlying revenue for the four months to the end of August has stabilised at a 5% fall, or down 8% for continuing operations.
"We are seeing a stabilisation of recent trends; but we are not complacent and are continuing to strengthen the business to deliver sustainable outperformance in the future," said Chief Executive Andy Reynolds Smith.
The company added that a strategic restructuring programme was underway which would realise GBP70 million benefits by financial 2022. It also reiterated its intention to separate Smiths Medical division.
The London-based company declared a final dividend of 24p a share and a delayed interim dividend of 11p, taking the total payout for financial 2020 to 35p, down 24% from 45.9p paid a year ago.
The dividend payment reflects the company's strong performance and financial position, Smiths Group said.
Separately, Smiths Group said non-executive directors Bruno Angelici and Olivier Bohuon have decided not seek re-election at the company's 2020 annual general meeting and will retire at the conclusion of the meeting.
The AGM is slated to take place on November 16.
By Tapan Panchal; tapanpanchal@alliancenews.com
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Smiths Group (SMIN)