Smiths reports strong growth in sales and profit

The group, whose products include airport security baggage scanning machines, reported headline sales for the year to 31 July up 6% at £2.3 billion (£2.2bn) and pre-tax profit also ahead 6% at £381 million (£244m). Chief executive Philip Bowman (pictured) said the group had delivered strong sales and profit growth driven by good performances from its engineering subsidiary John Crane, Smiths Detection and Smiths Interconnect but a performance improvement programme was underway to address operational issues that had held back Smiths Medical over the past two years. “The portfolio has been strengthened through one divestment and seven acquisitions which bring new technologies and extend Smiths geographic footprint – particularly in developing markets,” Bowman went on. Smiths had begun a substantial restructuring programme that would deliver operating efficiencies and improve customer service. Commenting on current economic turbulence, he said: “The sustained upheaval in the world economy is creating uncertainty in many markets and may disrupt government spending patterns – particularly in the US and India where there are forthcoming elections. However, Smiths Group is well placed among global businesses to meet these challenges.” Among key achievements for the year, the group had reorganised into five divisions with disbanding of Specialty Engineering; begun a restructuring programmes to reduce costs and improve customer service; rationalised its HQ to reduce cost; introduced incentive plans to reinforce performance improvement; made seven acquisitions; increased R&D investment (up 8% to £86m).