Wednesday 13 November 2019 2:59 pm

Smiths Group shares jump on the back of strong first quarter growth

Global technology company Smiths Group today announced that its guidance for the year remained unchanged, based on a strong first quarter performance.

Shares in the company rose 3.8 per cent on the back of the update.

Read more: Smiths Group spin off ailing medical division into separate business

The FTSE 100 company said that revenue was up 11 per cent for the three months ending 31 October, led by strong growth in its John Crane and Smith’s Detection divisions.

Revenue for the three months for Smiths Medical, which is in the process of being spun off from the group, rose two per cent.

The separation is expected to be completed by the end of the first half of 2020, so the figures are recorded as discontinued operations.

The decision to spin the unit off was taken to allow the remaining four divisions to grow into an industrial technologies group.

In March the company announced plans to list the individual medical business on the London Stock Exchange.

Read more: Biffa profit rises as division reorganisation pays off

A proposed sale of the unit to ICU Medical, which was reportedly valued at around £7bn, fell through last September.

For the full year, the Group expects year on year growth to be weighted towards the first half and to result in a more even balance in overall performance between the first and second halves of the year. 

Main image credit: Getty