SMIN28 Sep 2011 21:01
"Smiths Group has made good progress against a deteriorating economic backdrop. We continue to build a solid foundation for future growth through further operational efficiencies and greater investment in new product development, sales and marketing effectiveness, expansion of our emerging market exposure and targeted acquisitions. The results again demonstrate the significant benefits delivered by our sustained focus on operational improvement that have driven margins to new highs. At the same time, we increased investment in future growth drivers, such as company-funded research and development, up 5%, and spent more on sales and marketing. We have again delivered strong cash conversion in line with guidance, and increased the annual dividend ahead of inflation.
"The economic outlook remains uncertain and continued pressures on government spending, which particularly impacted Smiths Detection, Medical and Interconnect are likely to continue to constrain revenue opportunities of some of our businesses during fiscal 2012. However, we still see further potential to drive operational improvements, enhance margins and deliver strong cash conversion."
Philip Bowman
Chief Executive
Smiths Group plc
Divisional highlights*