Smiths Group raises dividend following strong half-year results

Smiths Group has rewarded shareholders with a six per cent increase in dividend after posting a rise in half-year revenue and profit, the company announced Wednesday.

Smiths Group has rewarded shareholders with a six per cent increase in dividend after posting a rise in half-year revenue and profit, the company announced Wednesday.

The firm, which has divisions across threat and contraband detection, medical devices, energy, communication and engineering, issued a dividend of 12.50p per share for the six months to January 31st 2013.

It came on back of a 6.0% year-on-year jump in underlying headline revenue of £1.4bn, as the company achieved strong performance across all its units including John Crane, Smiths Medical, Smiths Detection, Smiths Interconnect and Flex Trek.

Smiths Detection, the division which designs sensors that detect explosives and weapons, experienced the biggest growth as revenues climbed 19% following the release of new products.

Pre-tax profit came to £223m, an underlying growth of 6.0% on the previous year.

"Smiths Group has continued to make good progress with underlying revenue growth across all its businesses," Chief Executive Philip Bowman said.

"Looking to the second half, we see tough trading conditions as a result of the US medical device tax, slower demand in some parts of John Crane, and the impact of further government budget cuts. However, despite these challenges, there remain significant opportunities to generate value for shareholders over the medium term.

"We will continue to focus on investing to drive sales growth, and delivering further operational improvements, while maintaining strong cash conversion and improved returns."

RD

Recommended

How to profit from India’s high-tech recovery
Share tips

How to profit from India’s high-tech recovery

Professional investor David Cornell of the India Capital Growth Fund, selects three of his favourite Indian stocks to buy now.
27 Sep 2021
Share tips of the week – 24 September
Share tips

Share tips of the week – 24 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
24 Sep 2021
Three strong Asian stocks trading at bargain prices
Share tips

Three strong Asian stocks trading at bargain prices

Professional investor Nitin Bajaj of the Fidelity Asian Values investment trust picks three stocks that dominate their industries, earn good returns o…
20 Sep 2021
Why it pays to face up to your investment mistakes
Investment strategy

Why it pays to face up to your investment mistakes

Buying stocks can be a complicated business. But selling stocks can be tricky, too – even if you sell for the right reasons. Max King explains how to …
17 Sep 2021

Most Popular

A nightmare 1970s scenario for investors is edging closer
Investment strategy

A nightmare 1970s scenario for investors is edging closer

Inflation need not be a worry unless it is driven by labour market shortages. Unfortunately, writes macroeconomist Philip Pilkington, that’s exactly w…
17 Sep 2021
Two shipping funds to buy for steady income
Investment trusts

Two shipping funds to buy for steady income

Returns from owning ships are volatile, but these two investment trusts are trying to make the sector less risky.
7 Sep 2021
The times may be changing, but don’t change how you invest
Small cap stocks

The times may be changing, but don’t change how you invest

We are living in strange times. But the basics of investing remain the same: buy fairly-priced stocks that can provide an income. And there are few be…
13 Sep 2021