Last checked at 15 Nov 2016 07:00
News Release
London, 15 November 2016
For immediate release
Smiths Group trading update
Smiths Group plc ("Smiths" or "the Group") today announces its trading update for the three months ended 31 October 2016.
Overall Group performance in the first quarter was in line with management expectations. Revenue declined 3% on an underlying[1] basis. On a reported basis, revenue grew 16%, reflecting the effects of recent movements in foreign exchange[2].
Expectations for the full year remain unchanged.
At 28 October, net debt was £983 million. Since then net debt has reduced further, with the receipt of proceeds from the divestment of John Crane's Artificial Lift business and Smiths Medical's Wallace franchise.
Strategic progress
On 28 September 2016, the Group set out its strategy to lay the foundations for future value creation through stronger growth, improved competitiveness, more robust and consistent execution and a better focused portfolio.
With the recent divestment of John Crane's Artificial Lift business and Smiths Medical's Wallace franchise, the Group has disposed of £60 million of revenue[3] and released over £170 million of capital towards reinvestment in attractive growth opportunities. Further steps were also taken in the quarter to de-risk the Group's pension liabilities through a £250 million bulk annuity buy-in agreement.
ENDS
This press release contains certain forward-looking statements with respect to the operations, performance and financial condition of the Group. By their nature, these statements involve uncertainty since future events and circumstances can cause results and developments to differ materially from those anticipated. The forward-looking statements reflect knowledge and information available at the date of preparation of the press release and the Company undertakes no obligation to update these forward-looking statements. Nothing in this press release should be construed as a profit forecast.
Contact details
Investor enquiries
Andrew Lappin, Smiths Group
+44 (0)20 7004 1657
+44 (0)78 0500 7035
andrew.lappin@smiths.com
Kirsty Law, Smiths Group
+44 (0)20 7004 1672
+44 (0)75 8315 4386
kirsty.law@smiths.com
Media enquiries
Andrew Lorenz, FTI Consulting
+44 (0)203 727 1323
+44 (0)777 564 1807
smiths@fticonsulting.com
Deborah Scott, FTI Consulting
+44 (0)203 727 1459
+44 (0)797 953 7449
smiths@fticonsulting.com
Smiths Group is a global technology company listed on the London Stock Exchange (SMIN) and operates a sponsored level one ADR programme (SMGZY). A world leader in the practical application of advanced technologies, Smiths Group delivers products and services for the threat & contraband detection, medical devices, energy and communications markets worldwide. Smiths Group employs more than 22,000 people in over 50 countries. For more information visit www.smiths.com.
[1] Underlying excludes the impact of acquisitions and divestments, and the effects of foreign exchange translation.
[2] Exchange rates for Q1 FY17 of USD$1.29 and €1.16, and for Q1 FY16 of USD$1.54 and €1.38.
[3] Revenue for divested businesses for the year ended 31 July 2016.