Smiths pick of the bunch
Thursday 13 April 1995
And despite the continued turbulence being experienced by the aircraft industry, Smiths saw profits grow in all three divisions in the first half of the current year. That fed through to a 26 per centrise to £58m in overall pre-tax figure for the six months to January, with thedividend up 10 per cent to 5.05p.
The figures continue to justify Smiths' acquisition strategy. Gearing remains minimal despite £250m spent on acquisitions in the past two years and the results are coming through. Group profits growth was split between existing businesses and last year's acquisitions.
In existing businesses, aerospace is still reaping the benefits of Smiths' timely action on costs, which saw a further 250 job cuts in the first half on top of the 45 per cent drop in the workforce over the previous four years. That helped propel operating profits £2.2m higher to £16.3m, despite a £1.8m dip in sales to £172m.
In the face of scepticism from some quarters, medical systems also continue to push margins ahead, raising profits from £18.7m to £26.1m, while profits in the Vent-Axia fans to engineering industrial division were hoisted by a chunky £4.4m to £16.1m.
Roger Hurn, chairman and chief executive,believes the upturn in the civil aviation marketremains two years off,but Smiths should continue to remain insulated from the chill winds blowing through the industry.
Helping to tide it over will be its recent success in winning a key contract to supply avionics equipment contract for three new series of Boeing 737s coming into service from 1997, worth two-thirds of the value of the current work supplying 737s that will continue. Add in equipment for the new Boeing 777, which will fly later this year, and Smiths should come out ahead.
Full-year profits approaching £140m would put the shares on a prospective multiple of nearly 16. Reasonable value, with the added spiceof more acquisitions.
- 1 Michael Brown shooting: Amnesty International sends team within US for first time as National Guard deployed
- 2 James Foley 'beheaded': Isis video shows militant with British accent 'execute US journalist' – and warns Obama of more to come
- 3 Reading Festival 2014: Tesco branch replaces salad and potatoes for Jagermesiter and vodka
- 4 Here’s the damning letter Robin Williams wrote to his Mrs Doubtfire co-star's principal after they expelled her
- 5 Ferguson protests: 90-year-old Holocaust survivor Hedy Epstein ‘arrested’ by police during St Louis demonstrations
Michael Brown shooting: Amnesty International sends team within US for first time as National Guard deployed
Michael Brown shooting: Ferguson police shoot and kill second young black man
James Foley 'beheaded': Isis video shows militant with British accent 'execute US journalist' – and warns Obama of more to come
Iraq crisis: Islamic State's message to America - 'We will drown you all in blood'
Ferguson: In the heartlands of America, a descent into madness
Isis threat: Cameron wants an alliance with Iran
Crisis? What crisis? A visiting US doctor gives the NHS a rave review
Scottish independence: English people overwhelmingly want Scotland to stay in the UK
Russell Brand calls for Israel boycott: Comedian urges big businesses that 'facilitate the oppression of people in Gaza' to pull funding
Ukip MEP calls for reintroduction of death penalty on fiftieth anniversary of last deaths
Michael Brown shooting: Chaos erupts on the streets of Ferguson after autopsy shows teenager was shot six times – twice in the head
iJobs Money & Business
£475 - £550 per day + competitive: Orgtel: Senior Technical Accountant-Insuran...
£200 - £290 per annum + competitive: Orgtel: Sales Performance Manager, Key Ba...
£25000 - £30000 per annum + bonus+benefits+package: Harrington Starr: Junior D...
£600 - £800 per day: Harrington Starr: Java/Calypso Developer Java, Calypso, ...