Smiths Group keeps outlook unchanged despite underlying weakness

Technology outfit Smiths Group has reiterated guidance for full-year growth in spite of a weakening of underlying results over the first three quarters.

The company, which services the threat & contraband detection, medical devices, energy and communications markets, said its outlook for the year was unchanged from that given in March when it said it expected to "deliver improved underlying performance in the second half".

However, Smiths said that in the first nine months of its financial year to 2 May, underlying revenues and headline operating profit "fell slightly" on the previous year.

Like-for-like revenue declines at the Smiths Detection, Smiths Interconnect and John Crane divisions had offset growth at Smiths Medicald and Flex-Tek.

Nevertheless, Smiths said: "Expectations for the year remain in line with the outlook presented at the interim results."

Headline operating cash conversion across the group over the first nine months was said to have been strong at 96%.