Results round-up

Drug group Hikma Pharmaceuticals reported revenue of $1.44bn (£1.02bn) in its final results for 2015 on Wednesday, down 3% on what was an exceptionally strong 2014.

Its gross margin remained in line with 2014, at 56.8%, reflecting Hikma's cost control efforts across the business. The company's core operating profit of $409m was a 4% dip on 2014, or a 4% rise in constant currency. Group profit attributable to shareholders at $252m was down 9%, or up 2% on a constant currency basis.

Despite a lower contribution from specific market opportunities, particularly in generics, Hikma's net operating cash flow remained strong at $366m.

"Following an exceptional 2014, our branded and injectables businesses performed strongly in 2015 and we made excellent strategic progress in US generics, transforming the future prospects of the group," said chairman and chief executive Said Darwazah.

First-half sales were lower at Smiths Group but improved in the second quarter as its medical and detection arms mostly offset the weakness engineering arm John Crane endured in oil and gas markets.

The FTSE 100 company's pre-tax profits declined 9% to £189m on revenue 3% lower at £1.37bn in the six months to 31 January, which was short of consensus analyst estimates. Sales in the first quarter had been down 4%, however.

With basic earnings per share down 9% to 35.2p, the dividend was lifted 2% to 13.25p.

Although oil and gas markets were challenging, John Crane's aftermarket revenues proved resilient to help limit the decline in revenue to 13% to £393m, though operating margins were down 330 basis points (bps) to 19.9%.

Healthcare devices and consumables specialist Smiths Medical grew sales 1% to £411m, with operating margin up 150bps to 20.5%.

Airport X-ray provider Smiths Detection enjoyed solid sales growth of 4% yo £240m and 38% underlying profit profit growth as margins widened 210bps to 12.4%.

Electronic components arm Interconnect saw sales shrink 1% to £196m, while fluid engineering division Flex-Tek swelled sales 3% to £132m.

Chief executive Andy Reynolds Smith, who took the role in September, reassured that expectations for the full year remained unchanged, with performance anticipated to be slightly more weighted to the second half than usual.