Smiths Group delivers fourth-straight quarter of organic revenue growth

Engineering company Smiths Group reported its fourth consecutive quarter of organic revenue growth on Thursday, leading the firm to maintain its full-year guidance of 3% organic revenue growth.

Smiths, which said organic revenues were up 4.2% year-to-date, stated its solid third-quarter performance comes amid ongoing sales momentum, with three divisions in growth.

However, the FTSE 100-listed group did acknowledge potential impacts to further growth stemming from ongoing macroeconomic uncertainty, supply chain challenges, and an upcoming stronger comparator in the fourth quarter.

Smiths added that its £742.0m share buyback programme was on track and said it had now returned roughly £310.0m. At the current run-rate and share price, the programme was expected to complete in early 2023.

Chief executive Paul Keel said: "We delivered our fourth consecutive quarter of growth, demonstrating further progress against our strategy, towards our medium-term target of 4-6% organic revenue growth. As we enter the final quarter of FY2022, macro uncertainty remains high and supply chain and inflationary challenges continue. We are leveraging the Smiths Excellence System to help manage these headwinds, and confirm our full-year organic revenue growth guidance of 3%."

Reporting by Iain Gilbert at Sharecast.com