Smiths Group ups revenue guidance to 10%

Engineering company Smiths Group has upped its guidance after the company’s unit that makes X-ray machines for airports saw a strong quarter.

The business said it now expects 10% organic revenue growth this financial year.

It comes as revenue rose by 13.4% in the nine months to the end of April, down only marginally from a 13.5% rise in the first six months of the financial year.

“As a result of the group’s continued strong performance, we are raising 2023 financial year guidance to around 10% organic revenue growth with moderate margin improvement,” the business said on Friday.

It said subsidiary Smiths Detection had a “particularly strong quarter” due to the timing of some major deliveries as the company catches up with its orders.

Smiths Detection produces X-ray machines for security purposes, such as in airports and other high-security locations.

“The third quarter was another strong quarter for Smiths, building on the record performance we achieved in the first half,” said chief executive Paul Keel.

“We’ve now delivered eight consecutive quarters of growth, enabled by our strategy of accelerating growth, improving execution and investing in our people.

“My thanks to all our employees across the group for their commitment to our shared success.

“Our strong performance for the year to date, together with our confidence in the final quarter, has led us to raise our full year guidance to around 10% organic revenue growth, with moderate margin improvement.”

Shares rose by around 1% following the news.

Smiths said it had seen decent performances in its Flex-Tek and John Crane subsidiaries, but Smiths Interconnect saw worse demand from its end markets.