16th Nov 2020 08:25
(Alliance News) - Smiths Group PLC on Monday said it is confident of meeting market expectations for financial 2021 due to a "resilient" performance in the first quarter despite disruption caused by the pandemic.
The FTSE 100 engineering business said revenue for the three months ended October 31 was down 2% on an underlying basis, noting John Crane performed as expected, with challenging market conditions in Energy partially offset by "modest" growth in its Industrials unit.
Elsewhere, Smiths reported "strong performance" in its Detection division driven by the delivery of original equipment orders. It added that the Flex-Tek division also saw good Industrial sales that more than offset weakness in the Aerospace unit.
Revenue for the quarter for Smiths Medical, recorded as discontinued operations, was up 4% on an underlying basis driven by further growth in Infusion Systems and Vital Care.
Separately, the London-based company stated its restructuring programme is progressing well, highlighting that the programme will deliver the expected GBP30 million of savings in financial 2021 and GBP70 million of savings in financial 2022.
Cash held as at October-end was GBP413 million, up from GBP366 million on July 31, the end of financial 2020.
Shares in Smiths Group were trading 3.7% higher at 1,559.00 pence each on Monday morning in London.
By Ife Taiwo; [email protected]
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