3rd Feb 2006 07:00
Smiths Group PLC03 February 2006 Smiths Group: current trading Smiths Group will announce its interim results on Wednesday, 15 March for thesix months ended 31 January 2006. At the start of its close period, the companyis providing the following trading update. The company is currently achieving strong growth across its activities, andsales in the first half are expected to be close to 20% higher than a year ago.Underlying sales are expected to be ahead in all four divisions, with Medicaladditionally gaining from the inclusion of Medex for the full period. Operating profit, after charging restructuring costs, is also expected to haveimproved by approximately 20%, sustaining margins of approximately 12% at thisinterim stage. As indicated at the AGM, the pattern of profit performance willvary by division. Double digit growth is expected in Specialty Engineering,Detection and Medical (the latter helped by the inclusion of Medex). InAerospace, profit in this half is expected to be lower than last year, due tohigher development costs expensed in the period. Higher interest charges, due to the acquisition of Medex, will be partly offsetby an improvement in pensions financing. Profit before tax and EPS are bothexpected to be close to 14% ahead of last year. Net debt at 31 January is expected to be below £1 billion. The conversion ofcash from operating profit should be above 80%, after capital expenditure andsignificantly higher development costs capitalised in this period. Looking ahead, Smiths expects to sustain growth through the second half, withall four divisions contributing to a strong performance by the company in 2006. -o-Media: Investors:Chris Fox Russell Plumley+44 (0) 20 8457 8403 +44 (0) 20 8457 [email protected] [email protected] This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Smiths Group