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24 September 2020

Smiths Group plc Annual Results for the year ended 31 July 2020

Strong now and for the future

  • A robust FY2020 performance despite the disrupted second half, reflecting the Group’s market-leading positions and flexible business model
  • FY2021 focus continues to be on safeguarding employees and optimising performance
  • The strategic restructuring programme is well underway, £70m benefits expected by FY2022
  • Strategic intent to separate Smiths Medical unchanged
  • Maintaining resilience in the short term, but investing for long-term value creation

Andy Reynolds Smith, Group Chief Executive, commented:

“The strength and flexibility we have built into the business, and the benefits of the Group’s strategic positioning, underpinned a robust performance in challenging market conditions.

Our priorities remain the safety of our people and keeping the business running flawlessly to support customers. I’m incredibly grateful to our amazing people for their dedication in difficult times, which ensured we delivered in the year and continue to maximise opportunities for future growth.

The strength of performance during the year and our confidence in the future support the proposed total dividend. We remain prudent as we continue to navigate the ongoing uncertainty.

We have continued to enhance the Group’s strategic positioning, through execution of the restructuring programme, completion of three further bolt-on acquisitions and our unchanged commitment to separate Smiths Medical.

We are seeing a stabilisation of recent trends; but we are not complacent and are continuing to strengthen the business to deliver sustainable outperformance in the future.”


  Headline1 Statutory
  FY 2020
FY 2019
Reported growth Underlying growth2 FY 2020
FY 2019
Reported growth
Smiths continuing operations3              
Revenue 2,548 2,498 +2% (1)% 2,548 2,498 +2%
Operating profit
ex. restructuring & write-downs4,6
382 427 (11)% (13)%      
Operating profit 327 427 (23)% (13)% 241 326 (26)%
Smiths Medical - discontinued operations3              
Revenue 918 874 +5% +4%      
Profit after tax 139 112 +24% (3)% 200 85 +135%
Total Group5              
Profit for the year 338 385 (12)%   267 227 +18%
Basic EPS 84.8p 96.8p (12)% (12)% 66.9p 56.8p +18%
Free Cash-Flow6 273 234 +17%        
Dividend 35.0p 45.9p (24)%   35.0p 45.9p (24)%

The differences between headline and statutory operating profit are non-headline items as defined in note 3 to the accounts, of which the largest constituents are the amortisation of acquisition related intangible assets and provision for asbestos litigation in John Crane, Inc.

Operational resilience

  • Robust topline performance despite significant market disruption
  • Strong business continuity and exemplary customer service maintained during the pandemic with temporarily higher costs
  • Rewarded with further contract wins

Financial strength

  • Headline cash conversion6 at 123% (FY2019: 83%)
  • Net debt6 of £1.1bn (including leases) and EBITDA6 (Continuing and Discontinued) of £610m; a ratio of 1.7x (1.9x including restructuring and write-downs)
  • Cash of c.£390m and undrawn RCF of c.£610m; total liquidity headroom of £1bn
  • Total dividend of 35 pence per share reflecting delayed interim dividend of 11 pence per share and proposed final dividend of 24 pence per share

Attractive strategic fundamentals

  • Resilient characteristics: highly-differentiated, market-leading products and services; significant aftermarket activity serving critical industries; flexible cost base and strong cash generation
  • Well-positioned in long-term, attractive growth markets
  • A culture of innovation, entrepreneurship and relentless execution
  • Organic growth complemented by disciplined M&A and portfolio optimisation


  • Guidance remains withdrawn, given the uncertain depth and duration of the COVID-19 pandemic
  • Current trading reflects market conditions, with revenue for the four months to end of August stabilising at (5)% for the Group (continuing operations (8)%) against pre-COVID comparators
  • Continued focus on optimising performance, including the strategic restructuring programme which is well underway and expected to deliver £70m of benefits by FY2022
  • Strategic intent to separate Smiths Medical unchanged
  • Maintaining resilience in the short term, but investing for long-term value creation


Statutory reporting

Statutory reporting takes account of all items excluded from headline performance. On a statutory basis, total Group profit for the year was £267m (FY2019: £227m) and basic earnings per share were 66.9p (FY2019: 56.8p).

See accounting policies for an explanation of the presentation of results and note 3 to the financial statements for an analysis of non-headline6 items.


The following definitions are applied throughout the document and are Alternative Performance Measures (APMs) as defined in note 30 to the financial statements:
1 Headline: In addition to statutory reporting, the Group reports on a headline basis. Definitions of headline metrics, and information about the adjustments to statutory measures, are provided in note 3 to the financial statements.
2 Underlying modifies headline performance to adjust prior year to reflect an equivalent period of ownership for divested businesses, exclude the effects of foreign exchange, acquisitions, restructuring costs and write-downs, and add back the depreciation and amortisation of discontinued operations for comparability purposes.
3 Continuing operations exclude Smiths Medical which is accounted for as ‘Discontinued operations – businesses held for distribution to owners’. Discontinued operations are defined in note 28 to the financial statements.
4 Restructuring and write-downs as defined in note 2 to the financial statements.
5 Total Group comprises continuing operations and discontinued operations.
6 APMs are defined as in note 30 to the financial statements


View the full press release


Contact details

Investor enquiries

Jemma Spalton, Smiths Group
+44 (0)20 7004 1637 
+44 (0)78 6739 0350

Marion Le Bot, Smiths Group
+44 (0)20 7004 1672
+44 (0)75 8315 4386

Media enquiries

Richard Mountain, FTI Consulting
+44 (0)20 3727 1374
+44 (0)790 968 4466

Alex Le May, FTI Consulting
+44 (0)20 3727 1308
+44 (0)770 244 3312


Legal Entity Identifier (LEI): 213800MJL6IPZS3ASA11


The presentation slides and a live webcast of the analyst presentation will be available at at 09.00 (UK time) today. A recording of the webcast will be made available from 13.00 (UK time).


Original high-resolution photography is available to the media from the media contacts above or from

This document contains certain statements that are forward-looking statements. They appear in a number of places throughout this document and include statements regarding the intentions, beliefs and/or current expectations of Smiths Group plc (the “Company”) and its subsidiaries (together, the “Group”) and those of their respective officers, directors and employees concerning, amongst other things, the results of operations, financial condition, liquidity, prospects, growth, strategies and the businesses operated by the Group. By their nature, these statements involve uncertainty since future events and circumstances can cause results and developments to differ materially from those anticipated. The forward-looking statements reflect knowledge and information available at the date of preparation of this document and, unless otherwise required by applicable law, the Company undertakes no obligation to update or revise these forward-looking statements. Nothing in this document should be construed as a profit forecast. The Company and its directors accept no liability to third parties. This document contains brands that are trademarks and are registered and/or otherwise protected in accordance with applicable law.

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