Business
Smiths Group Interim Results 2023
Smiths Group Interim Results 2023.
About this update from Smiths Group Plc
[{"type":"text","content":"\n \n \n \n SMITHS GROUP PLC - HALF YEAR RESULTS FOR 6 MONTHS ENDED 31 JANUARY 2023\n \n \n \n \n Pioneers of progress - improving our world through smarter engineering\n \n \n \n \n \n \n \n \n \n Continued progress with record growth and increased FY2023 guidance\n \n \n \n \n \n \n \n \n ·\n \n Record growth - organic revenue +13.5%\n \n \n 1\n \n \n ,\n \n \n reported revenue +25.6%, EPS\n \n \n 2\n \n \n + 52.1%\n \n \n \n o\n Seventh consecutive quarter of growth, equally balanced between volume and price\n \n \n o\n Growth across all divisions, geographic regions, and major customer end markets\n \n \n o\n 200bps of growth from new product launches with a +13.5% increase in R&D to support future as well as current growth\n \n \n \n \n \n ·\n \n Improving execution - Smiths Excellence System (\"SES\") delivering clear benefits \n \n \n \n o\n Headline2 operating profit growth of +27.4% with margin up +20bps to 16.1%\n \n \n o\n +£5m operating profit contribution from SES, scaling to +£12m for FY. Expanding programme with additional resources\n \n \n o\n ROCE\n \n 3\n \n +120bps to 15.2%, driven by strong profit generation\n \n \n o\n Operating cash conversion3 of 63% reflecting continued investment to secure supply and support sustainable growth\n \n \n \n \n \n ·\n \n Inspiring & empowering our People - advancing our inclusive and high-performing culture\n \n \n \n o\n Further progress embedding Smiths Leadership Behaviours\n \n \n o\n Increased investment in talent development with relaunch of our Accelerate leadership training programme\n \n \n o\n Actively investing in numerous diversity, equity & inclusion and employee engagement initiatives\n \n \n o\n Published inaugural Sustainability Report; introduced ESG targets into incentive compensation plans; on track to deliver FY2023 ESG targets\n \n \n \n \n \n ·\n \n Strong balance sheet - a foundation for sustainable growth and shareholder returns\n \n \n \n o\n Net debt to EBITDA of 0.8x \n \n \n o\n Share buyback c.90% complete\n \n \n o\n Proposed interim dividend of 12.9p, +5%\n \n \n \n \n \n \n FY2023 Guidance\n \n \n \n ·\n Raising FY2023 guidance to at least 8% organic revenue growth, with moderate margin improvement\n \n \n \n \n \n \n \n \n \n \n Headline2\n \n \n \n \n \n \n HY2023\n...