Smiths Group PLC Smiths Group Q1 Trading Statement (3500F)

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RNS Number : 3500F

Smiths Group PLC

16 November 2020

News Release

London , 16 November 2020

For immediate release

Smiths Group Q1 Trading Statement

Smiths Group plc ("Smiths" or "the Group") today announces its trading statement for the first quarter of FY2021.

Smiths delivered a good trading performance in the first quarter. In a period of ongoing global disruption, the Group continues to demonstrate its resilience, founded on market-leading positions and a high proportion of aftermarket revenues.

Revenue for the three months ended 31 October for Continuing Operations(1) was down (2)% on an underlying(2) basis. This underpins the Group's confidence in meeting market expectations for the full year.

-- John Crane performed as expected, with challenging market conditions in Energy, partially offset by modest growth in Industrials

-- Smiths Detection delivered a strong performance in Aviation during the quarter, driven by delivery of original equipment orders, which was offset by Other Security Systems

   --      Flex-Tek delivered strong Industrial sales that more than offset Aerospace weakness 
   --      Good momentum continued in Smiths Interconnect 

Revenue for the three months ended 31 October for Smiths Medical(1) was up 4% on an underlying(2) basis driven by further growth in Infusion Systems and Vital Care.

The Group's strategic restructuring programme is progressing well and will deliver the anticipated GBP30m of savings in the current year and the full GBP70m benefit in FY2022.

The Group continues to demonstrate its strong cash generation and cash balances at 31 October had increased to GBP413m.

On 27 October 2020, the Trustee of the Smiths Industries Pension Scheme secured a further GBP146.5m bulk annuity buy-in agreement with Canada Life, which insured the benefits of a further c.1,000 pensioners, demonstrating further progress in the de-risking of the Company's pension liabilities.

(1) Continuing Operations exclude Smiths Medical which is accounted for as 'Discontinued Operations - businesses

held for    distribution to owners', given the intended   separation of Smiths Medical. 

(2) Underlying modifies headline performance to exclude the effects of foreign exchange.

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 Investor enquiries            Media enquiries 
 Jemma Spalton, Smiths Group   Richard Mountain, FTI       Alex Le May, FTI 
  [phone]           Consulting                  Consulting 
  [e-mail]      [phone]         [phone] 
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Legal Entity Identifier (LEI): 213800MJL6IPZS3ASA11

About Smiths Group

Smiths is a global technology company listed on the London Stock Exchange (SMIN) and operates a sponsored level one ADR programme (SMGZY). Its businesses share common characteristics (well-positioned in growing markets, technology-led, asset-light, digitising, with a high proportion of aftermarket revenues) and a common operating model (The Smiths Excellence System). For more information visit www.smiths.com .

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November 16, 2020 02:00 ET (07:00 GMT)