Smiths Group, the FTSE 100-listed conglomerate best known for its airport scanners, today disappointed City investors after posting annual results.
London-based Smiths, whose operations also span the energy and space industries, reported full-year revenues of £3.1 billion for organic growth of 5.4%.
Operating profits for the year to 31 July improved by 5% on a reported basis to £526 million but shares fell 7% or 131p to 1689p as the performance missed City hopes.
Smiths extended its dividend record to a 73rd year by increasing the payout 5.2% to 43.75p, while it forecast revenues growth for the current year of between 4% and 6%.
Presenting his first set of results as chief executive, Roland Carter also reiterated medium-term guidance: “We are making good strategic, operational and financial progress, and all our businesses are well positioned for compelling value creation.”
He announced two North American acquisitions in support of Flex-Tek’s position in the industrial heating and ventilation and air conditioning markets.
The deals involving Modular Metal Fabricators and Wattco cost a combined £110 million.
Flex-Tek’s operating profit rose 8% to £161 million on slightly lower revenues of £786 million.
Smiths Interconnect, the maker of components for applications across commercial aviation, defence and the space industry, posted a weaker performance due to pressure in the semiconductor testing market.
The detection business, which provides screening technologies for aviation, ports and borders, urban security and defence, reported a 14.1% rise in operating profit to £102 million.
Its performance was boosted by ongoing demand for airport scanner upgrades and multi-year defence contracts.
