LONDON (dpa-AFX) - British technology company Smiths Group plc (SMIN.L) Friday reported that its first-half pre-tax profit declined 13 percent to 174 million pounds from last year's 200 million pounds.
Profit after tax, however, grew 15 percent to 121 million pounds from 105 million pounds a year ago. Basic earnings per share were 30.3 pence, 15 percent higher than 26.3 pence last year.
Headline pre-tax profit was 216 million pounds, compared to 218 million pounds a year earlier. Headline basic earnings per share were 40.2 pence, compared to 40.7 pence last year.
Revenue for the period grew 2 percent to 1.57 billion pounds from 1.54 billion pounds last year driven by good growth in John Crane, Flex-Tek and Smiths Interconnect. Underlying revenue went up 2%.
Further, the Board has declared an interim dividend of 14.1p per share, up 2.2%. The interim dividend will be paid on 26 April 2019 to shareholders on the register at close of business on 5 April 2019.
Looking ahead, Smiths reaffirmed its outlook for fiscal 2019. The company expects to continue to deliver sustainable underlying revenue growth of at least 2%, underpinned by current trading of four industrial technology divisions and by the increasing contribution from new product launches in Smiths Medical.
Separately, Smiths announced its plans for the separation of Smiths Medical, to create two stronger, industry-leading companies.
Smiths intends to pursue a demerger of the Smiths Medical business and separately list it in the UK. The company expects to complete the process during the first half of CY2020, conditional on the approval of Smiths' shareholders.
The Board will continue to evaluate all opportunities for value maximisation as the process goes forward.
The move will enable Smiths to concentrate on growing as a leading Industrial Technology group, united by shared business characteristics and a common operating model.
In preparation, Smiths is making good progress on the recruitment of a Smiths Medical CEO and has assessed the timetable and workstreams involved in the demerger.
Copyright RTT News/dpa-AFX
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