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Smiths Group PLC (LSE:SMIN), pioneers of progress in engineering, reported robust financial performance for the year ending 31 July 2024, reflecting consistent delivery on its strategic goals and positioning the company for continued value creation.
Key Financial Highlights:
- Organic revenue growth of +5.4%.
- Headline operating profit margin reached 16.8%.
- Headline EPS increased by +8.3%.
- Operating cash conversion stood at 97%, with a strong balance sheet showing a net debt-to-EBITDA ratio of 0.3x.
- The company proposed a final dividend of 30.2p, representing an increase of +5.2%.
Strategic Moves:
- Smiths Group announced two acquisitions worth up to £110 million to strengthen its Flex-Tek division's HVAC and industrial heating businesses.
- The company also introduced a Group-wide Acceleration Plan aimed at enhancing profitability and productivity, with one-off costs of £60-65 million over FY2025-2026, expected to yield annual benefits of £30-35 million by FY2027.
Outlook:
- For FY2025, Smiths Group expects organic revenue growth of 4-6% and continued margin expansion.
- The company reaffirmed its medium-term financial targets and remains focused on growth, people development, and operational execution, while maintaining its commitment to a high-performance, purpose-driven culture and ESG initiatives.
Smiths Group's strong financial performance and disciplined approach to acquisitions underscore its continued focus on engineering a better future.
