In January 2025, we announced a number of strategic actions to unlock significant value creation. We are focussing on our high performance industrial technologies for efficient flow and heat management:
- Focus on our world-class John Crane and Flex-Tek businesses
- These businesses occupy leading positions in attractive markets with structural growth mega-trends
- They have a track record of organic growth, strong operational and financial performance, and attractive financial returns
As part of this update, our Smiths Interconnect business will be divested, and Smiths Detection will be separated either by UK demerger or sale following the sale of Smiths Interconnect.
Our Acceleration Plan continues and will deliver a streamlined Group cost base, and we are committed to enhancing shareholder returns, increasing our buyback programme to £500m and returning a large portion of all transaction proceeds.
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We will become a more focused business with significant potential for future growth and value creation. Focusing on our world-class John Crane and Flex-Tek businesses and carefully managing the separation of Smiths Interconnect and Smiths Detection, we will deliver significant value for all stakeholders.
Smiths Group plc investment highlights
In FY24 we made significant progress against our medium-term targets
Organic revenue growth
Headline EPS growth
ROCE
Headline operating profit margin
Headline operating cash conversion
Fundamentally strong business
Smiths is a FTSE 100 company with a balanced portfolio of market-leading, industrial technology businesses. All our businesses have leading positions in critical markets, and deliver superior customer service through our global capabilities and sustained investment in R&D.
All of this supported by a robust financial framework with high proportion of recurring revenues through our aftermarket offering, and high and resilient margins.
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Recognition
Our team were delighted to have been recognised at the UK PLC awards ceremony winning the Best Investor Communications award. As part of the submission we were recognised for our strong corporate website, innovative approach to capital market events and our ESG communications.
Tackling critical issues
Global megatrends are reshaping our lives. Climate change, safety and security, and insatiable demand for data are some of the most pressing challenges facing human society in the next few decades. Explore how we’re using our engineering expertise to tackle these critical global opportunities and improve our world.
Decarbonising our world
The UN’s critical global climate objectives has the ambition to limit global warming to 1.5°C. How can net zero be achieved?
Making the world a safer place
How can people travel freely and stay safe? Ensuring the free movement of people and goods in an ever-changing threat landscape is more crucial than ever.
Enhancing data transmission
Global data consumption is doubling every four years. In a world where technology is rapidly evolving, how do we keep up?
Building momentum
In FY2024 we delivered further progress, with organic revenue growth of +5.4% and a +30bps increase in headline operating profit margin to 16.8%, both in line with guidance, and headline earnings per share growth of +8.3%. We improved headline operating cash conversion to 97% through a focus on working capital. We have announced two highly attractive acquisitions, deploying capital in a disciplined way whilst maintaining our strong balance sheet. We are well set for continued delivery in FY2025, and beyond. Effective execution of our strategy has enhanced our performance, but there is more we can do – and we will build on, and out from, this solid foundation.
Strong balance sheet
We have a strong balance sheet and the flexibility to support a range of growth opportunities, and will continue to allocate capital in a disciplined way for value creation. Here, organic investment (R&D and capex) will remain our primary focus, followed by strategic and disciplined M&A, and then returning excess capital to shareholders through our progressive dividend and, when compelling, share buybacks.
As evidenced by our recent acquisitions, we have a more active acquisition pipeline than historically, providing us with a greater set of opportunities through which we can grow our businesses, while maintaining our strict value creation discipline.
Long term growth potential
Smiths has a clear strategy to deliver consistent and sustainable organic revenue growth and improved execution, and has demonstrated significant progress against this in recent years. Effective execution of our strategy has enhanced our performance, but there is more we can do – and we will build on, and out from, this solid foundation.
We see significant long-term growth potential at Smiths.
Total shareholder return