British engineering giant Smiths has reported a return to revenue growth, in its first set of results since the appointment of its new CEO in May.
Underlying revenue for the Group was two per cent for the full year, with growth seen in the final quarter. Operating profit at the multinational engineering company was up seven per cent and in a sign of confidence, the Group’s full year dividend rose by eight per cent.
The FTSE 100 company added that it expected to return to pre-Covid levels of revenue growth during the year, despite the continuation of economic uncertainty and supply chain challenges.
Smiths CEO Paul Keel, who previously worked with US industry giant 3M for 16 years, said the Group’s “robust” results meant it was “well positioned in markets with near-term upside and attractive long-term growth drivers.”
“Our focus now,” added Keel, “is squarely on acceleration – acceleration of delivery, acceleration of growth, and acceleration of value creation.”
More details of his plans for acceleration are expected to be shared in November.
The results follows the Group’s decision, announced last month, to sell its medical division to US private equity firm TA Associates for $2.3bn (£1.7bn).
The board of Smiths unilaterally approved the offer, which it said could realise $1.8bn in cash proceeds on completion.
The blue chip stock will retain a 30 per cent stake in the spun-off division, which makes specialty devices for infusion therapy, vascular access and vital care.
It said that the deal would allow it to focus on its core operations, which centre around the manufacture of sensors for the detection of explosives, weapons, chemical agents.
The deal is expected to be completed in the first half of next year.