Smiths Group posts profit rise

British engineering group confirms chief executive appointment

Smiths Group, which manufacturers industrial seals, medical devices and security detectors, has reported a 3% increase pre-tax profit to £459 million for the year ended 31 July. 

However, the company reported a 2% fall in revenue to £2.9 billion.

Its John Crane energy services company, whose clients include BP and Chevron, was hit by lower oil and gas prices that reduced demand for its products and pushed down revenues by £23 million.

The group's electricals business Smiths Interconnect and Smiths Detection, the unit that produces x-ray inspection systems, metal detectors and mobile explosive detectors, also saw revenues fall.

Meanwhile, Smiths Medical reported a £32 million increase in revenues, while Flex-Tek – which makes components to heat and move fluids and gases – posted a £10 million rise in sales.

Philip Bowman, chief executive, said: "Over the last eight years, we have increased our investment in revenue growth opportunities through investment in innovation, expansion in emerging markets and better sales and marketing effectiveness. 

“Our Fuel for Growth restructuring programme is on track and has generated £33 million of annual savings which were largely reinvested in growth initiatives as part of our Engineered for Growth plans.”

Bowman will step down on 24 September and will be replaced by GKN Automotive’s chief executive Andrew Reynolds Smith.