25th Mar 2025 09:34
(Alliance News) - Smiths Group PLC on Tuesday raised its interim dividend and confirmed plans to continue its share buyback programme, as it reported improved profit and revenue.
London-based Smiths is an engineering firm operating in the energy, security & defence, space & aerospace and general industrial sectors. It also on Tuesday announced the acquisition of Duc-Pac Corp, a Massachusetts, US-based maker of heating, ventilation and air conditioning ducts.
Smiths reported a pretax profit of GBP228 million in the half-year that ended January 31, up 33% from GBP171 million a year before. Revenue was GBP1.61 billion, up 6.7% from GBP1.51 billion.
Within the revenue increase for the first half, organic revenue growth was 9.1%, and Smiths confirmed its guidance for 6% to 8% organic revenue growth for all of financial 2025.
The company also noted it achieved 50 basis points in organic operating profit margin to 16.7% in the half-year from 16.3% a year before, confirming as well its guidance for 40 to 60 points in margin expansion for the full year.
Operating profit was GBP268 million in the first half, up 9.5% from GBP246 million a year before, or 13% on an organic basis.
"We have delivered another strong financial performance which, combined with ongoing strategic and operational progress, underpins our confidence in achieving our twice-raised full year guidance," said Chief Executive Officer Roland Carter.
"The portfolio actions that we announced in January 2025 are being advanced with pace and purpose, with the separation processes for Smiths Interconnect and Smiths Detection underway."
In January, Smiths said it plans to sell its electronic connectors business by the end of 2025 and separate is threat detection arm, either by UK demerger or sale. It said this was to "unlock significant value and enhance returns to shareholders".
Smiths on Tuesday declared a cash interim dividend of 14.23 pence, up 5.0% from 13.55p a year before.
The company also confirmed it will shortly begin the GBP350 million second tranche of its GBP500 million share buyback programme. The buyback will be run by HSBC Bank PLC and completed by the end of December.
New acquisition Duc-Pac is a Springfield, Massachusetts-based metal duct manufacturer, which will be added to Smiths Group's Flex-Tek division. Smiths Group will pay USD40.5 million, which it said represent 7.2 times Duc-Pac's annual earnings before interest, tax, depreciation and amortisation.
Smiths Group shares were up 1.1% to 2,018.00p early Tuesday in London. The wider FTSE 100 index was up 0.4%.
By Tom Waite, Alliance News editor
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