Smiths Group PLC Trading Statement (1389P)
November 15 2016 - 2:00AM
UK Regulatory
TIDMSMIN
RNS Number : 1389P
Smiths Group PLC
15 November 2016
News Release
London, 15 November 2016
For immediate release
Smiths Group trading update
Smiths Group plc ("Smiths" or "the Group") today announces its
trading update for the three months ended 31 October 2016.
Overall Group performance in the first quarter was in line with
management expectations. Revenue declined 3% on an underlying[1]
basis. On a reported basis, revenue grew 16%, reflecting the
effects of recent movements in foreign exchange[2].
Expectations for the full year remain unchanged.
At 28 October, net debt was GBP983 million. Since then net debt
has reduced further, with the receipt of proceeds from the
divestment of John Crane's Artificial Lift business and Smiths
Medical's Wallace franchise.
Strategic progress
On 28 September 2016, the Group set out its strategy to lay the
foundations for future value creation through stronger growth,
improved competitiveness, more robust and consistent execution and
a better focused portfolio.
With the recent divestment of John Crane's Artificial Lift
business and Smiths Medical's Wallace franchise, the Group has
disposed of GBP60 million of revenue[3] and released over GBP170
million of capital towards reinvestment in attractive growth
opportunities. Further steps were also taken in the quarter to
de-risk the Group's pension liabilities through a GBP250 million
bulk annuity buy-in agreement.
ENDS
This press release contains certain forward-looking statements
with respect to the operations, performance and financial condition
of the Group. By their nature, these statements involve uncertainty
since future events and circumstances can cause results and
developments to differ materially from those anticipated. The
forward-looking statements reflect knowledge and information
available at the date of preparation of the press release and the
Company undertakes no obligation to update these forward-looking
statements. Nothing in this press release should be construed as a
profit forecast.
Contact details
Investor enquiries
Andrew Lappin, Smiths Group
+44 (0)20 7004 1657
+44 (0)78 0500 7035
andrew.lappin@smiths.com
Kirsty Law, Smiths Group
+44 (0)20 7004 1672
+44 (0)75 8315 4386
kirsty.law@smiths.com
Media enquiries
Andrew Lorenz, FTI Consulting
+44 (0)203 727 1323
+44 (0)777 564 1807
smiths@fticonsulting.com
Deborah Scott, FTI Consulting
+44 (0)203 727 1459
+44 (0)797 953 7449
smiths@fticonsulting.com
Smiths Group is a global technology company listed on the London
Stock Exchange (SMIN) and operates a sponsored level one ADR
programme (SMGZY). A world leader in the practical application of
advanced technologies, Smiths Group delivers products and services
for the threat & contraband detection, medical devices, energy
and communications markets worldwide. Smiths Group employs more
than 22,000 people in over 50 countries. For more information visit
www.smiths.com.
[1] Underlying excludes the impact of acquisitions and
divestments, and the effects of foreign exchange translation.
[2] Exchange rates for Q1 FY17 of USD$1.29 and EUR1.16, and for
Q1 FY16 of USD$1.54 and EUR1.38.
[3] Revenue for divested businesses for the year ended 31 July
2016.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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