Smiths Group first quarter revenue drops on order timing

Diversified engineer Smiths Group reported a drop in revenue for the first quarter on Tuesday but reiterated its expectations for the full year.

In an update for the three months to 31 October, the company said revenue fell 2% on an underlying basis, mostly due to order timing. Nevertheless, management expectations for the full year remain unchanged and the group expects to return to growth for FY2018.

Smiths said that during the period, further steps were taken to de-risk the company’s pension liabilities through a £207m bulk annuity buy-in agreement. Over 95% of the group's total pension liabilities are now hedged through its liability investment strategy.

Smiths is due to hold a Capital Markets Day in London for investors and analysts on 6 December.