By Smiths Group, a leading UK engineering company, announced its impressive financial results for the fiscal year ended July 31. Let’s take a closer look at the key details:
Pre-tax Profit Exceeds Expectations
Smiths Group reported a remarkable pre-tax profit of £360 million ($439.6 million) in fiscal 2023, compared to the prior year’s figure of GBP103 million. While slightly below the analyst consensus of GBP366.35 million, this significant increase showcases the company’s strong performance.
Revenue Surpasses Market Expectations
The FTSE 100 group achieved an impressive revenue of GBP3.04 billion, surpassing the previous year’s GBP2.57 billion. This result exceeded market expectations, which anticipated revenue of GBP2.99 billion.
Key Highlights
Here are a few aspects we closely monitored:
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Guidance: Smiths Group provided guidance for an organic revenue growth ranging between 4% and 6% in fiscal 2024, aligning with its medium-term target. Analyst Mark Fielding from RBC Capital Markets notes that the outlook is consistent with consensus expectations, with potential upside if growth falls towards the middle or upper end of the target range.
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Dividend: The company announced a final dividend of 28.7 pence per share, marking an increase from the previous year’s 27.3 pence. The full-year dividend of 41.6 pence was slightly lower than the expected consensus of 42.38 pence, as reported by Visible Alpha.
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Divisional Performance: Smiths Group’s two largest divisions, John Crane and Smiths Detection, were significant contributors to its strong revenue performance. Both divisions exceeded the company’s consensus forecasts for organic growth by 2.8 and 4.0 percentage points, respectively. However, the Flex-Trek division’s growth slightly fell below consensus at 10.1% compared to the expected 10.3%. Additionally, Smiths Interconnect experienced a 2.8% decline in organic revenue instead of the anticipated 0.8% growth.
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