(Alliance News) - Smiths Group PLC on Thursday reported a slow-down in quarterly organic revenue growth, but said it was still on track to meet its full-year targets.
The London-based engineering firm said organic growth in the first three months of the financial year ending July 31 was 3.5%, compared to 13% in the corresponding quarter a year ago.
While its John Crane and Smiths Detection branches saw double-digit and high single-digit organic revenue growth respectively, Smiths said Flex-Tek's organic revenue declined due to "weakness in the US heating, ventilation and air conditioning market".
Additionally, Smiths Interconnect's organic revenue and order decline worsened in the first quarter of the financial year due to "challenging market conditions".
Despite the slow start, Smiths affirmed that its first quarter performance was in line with its expectations and said it expects its full-year organic revenue growth to fall within the medium-term target range of between 4% and 6%.
Chief Executive Officer Paul Keel commented: "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 order books 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 [financial 2023] comparators, a moderating pricing environment and softer market conditions in parts of Flex-Tek and Smiths Interconnect."
Shares in Smiths were up 0.5% at 1,657.50 pence each in London on Thursday morning.
By Sabrina Penty, Alliance News reporter
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Smiths Group (SMIN)