Smiths Group FY pre-tax profits surge

Engineering company Smiths Group said on Friday that full-year organic revenues and pre-tax profits had grown ahead of expectations amid "high demand" across the majority of its end markets.

Smiths stated that organic revenues had increased 3.8% to £2.56bn, marking a fifth consecutive quarter of growth, while statutory pre-tax profits surged 263.2% to £1.03bn.

Headline operating profits increased 12% on a reported basis to £417.0m as reported operating profit margins expanded 80 basis points to 16.3%.

The FTSE 100-listed firm also reported basic earnings per share of 267.1p, up 272.5% year-on-year, and declared a full-year dividend per share of 39.6p each, up 5% on the 2021 fiscal year.

Looking ahead to the 2023 trading year, Smiths said it now expects to deliver 4.0-4.5% organic revenue growth, with a "moderate" margin improvement, with the group's confidence being driven by its "strong order books" and "leading market positions".

Chief executive Paul Keel said: "We continued to demonstrate strong progress in FY2022, executing at pace on our growth strategy. We delivered growth ahead of expectations, our fastest organic growth in nearly a decade. Along with accelerating growth, we further strengthened our company through increased investments in innovation, commercialisation and supply chain."

Reporting by Iain Gilbert at Sharecast.com