Key strengths
Smiths Group implements its strategy by capitalising on its key corporate strengths, which are common across its portfolio of businesses.
Globally recognised quality brands
Our brands are recognised by customers across the world, particularly in protecting transport, borders and the military (Smiths Detection), supplying vital oil and gas seals and services (John Crane) and airway and pain management and regional anaesthesia (Smiths Medical).
Markets with historic long-term defensive qualities
We operate in markets with historic long-term underlying defensive dynamics. These include security enhancement to combat evolving terror threats, oil and gas production to meet global energy demands, products to meet the growing healthcare needs of ageing populations and continual advances in wireless communications.
Product engineering
Our core competency is leadership in innovation and advanced technology and their practical, commercial applications. These include a new generation of security scanners for airports and borders, advanced testers for mobile phone networks, portable medication delivery systems and solar-powered pumps for remote gaswells.
Small batch, low-cost manufacturing
Access to a global manufacturing and service footprint minimises costs and allows us to sustain margins over the long term. With around 22,000 staff in over 50 countries, we are pushing through a programme of site rationalisation and relocation to low-cost countries, such as Mexico (John Crane, Smiths Medical, Smiths Interconnect and Flex-Tek) and Costa Rica and Tunisia (Smiths Interconnect). We create efficiencies through a lean divisional structure and a focus on customers. We are expanding in high-growth markets such as China and India.
Low capital intensity and strong free cash-flow
Our businesses generally have low requirements for major upfront capital commitments, allowing solid investment in research and development. After working capital and net capital expenditure, our operating cash-flow is a high percentage of operating profit.
Close relationships with blue chip customers and governments
We enjoy strong relationships with our customer base, including blue chip corporates, such as Motorola, Boeing, GE and Shell, governments, such as the US and UK, and government agencies including the TSA.