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25 March 2022

Smiths Group plc – Half Year Results for 6 months ended 31 January 2022

Accelerated growth, executing against our strategy

Pioneers of progress – improving our world through smarter engineering


Good growth delivered in H1

  • Organic revenue +3.4%2
  • Strong demand across most end markets with good order growth

Strong profit conversion and earnings growth

  • Underlying operating profit up +11.1%3 and underlying operating profit margin +110bps3
  • Successfully managed cost inflation
  • Underlying EPS +13.8%3,5 for continuing operations

Good cash generation and strong returns

  • 93%4 operating cash conversion despite the challenging supply chain environment
  • ROCE7 up +370bps reflecting higher profitability and working capital discipline

More focused portfolio following earlier completion of Smiths Medical sale

  • £1bn profit on disposal with further value to come from ICU shareholding and potential earnout
  • Stronger balance sheet enabling continued investment for growth, the early repayment of a $400m bond and capital returns
  • Over 25% of the £742m share buyback already completed

Demonstrating meaningful progress against our strategic priorities and targets

  • Accelerated organic growth
  • Advancing the new phase of the Smiths Excellence System, improving speed and efficiency
  • Heightened focus on sustainability and maximising accompanying growth opportunities


Headline1 H1 2022 H1 2021 Reported Underlying3
Continuing operations5        
Revenue £1,192m £1,150m +3.7% +3.4%
Operating profit £189m £166m +13.9% +11.1%
Operating profit margin 15.9% 14.4% +150bps +110bps
Basic EPS 30.6p 26.0p +17.7% +13.8%
Operating cash conversion4 93% 158%    
ROCE7 14.0% 10.3% +370bps  
Total Group6        
Profit for the half year (after tax) £171m £171m 0.0% +10.4%
Basic EPS 43.0p 42.9p +0.2% +10.7%


Statutory H1 2022 H1 2021 Reported
Continuing operations5      
Revenue £1,192m £1,150m +3.7%
Operating profit £157m £143m +9.8%
Total Group6      
Profit for the half year (after tax) £1,123m £129m +771%
Basic EPS 283.9p 32.3p +779%
Dividend per share 12.3p 11.7p +5.0%



  • Strong demand in most customer end markets; but expect more challenging Aviation OE market in the near-term
  • Clear strategy with improving execution
  • Continued good operating leverage
  • Further new product launches on schedule
  • Geopolitical and macroeconomic environment creating uncertainty; navigating supply chain challenges and increasing inflation
  • Maintaining full year guidance of 3% organic revenue growth


Paul Keel, Group Chief Executive, commented:

“We are shocked and appalled by the tragic events in Ukraine. We join with the broader international community in calling for peace. In response to the conflict, we have suspended sales into Russia. Our highest priority is ensuring the safety, security and wellbeing of our colleagues in the region; all are safe and continue to receive full support from Smiths. Our business in the region represented less than 1% of Smiths’ revenues in FY2021.

Our performance in the first half demonstrates the meaningful progress we are making against our strategy. We accelerated Smiths’ organic revenue growth to +3.4% and converted that into even stronger profit and earnings growth, despite supply chain challenges and cost inflation.

Improvement in the first half centred on the levers we are pulling to accelerate our growth and consistently deliver results, underpinned by our focus on continuous operational excellence and investment in our people and culture.

An important milestone for us was completing the sale of Smiths Medical, ahead of schedule. This has enabled us to simplify our business, focus on our higher-performing, more strategically-aligned industrial technology core, whilst investing for growth, deleveraging and returning surplus capital to our shareholders.

We’re encouraged by our good progress and I thank my 14,000 colleagues around the world who make it happen. Notwithstanding the significant uncertainty in the geopolitical and macroeconomic environment, we maintain the 3% organic revenue growth guidance we previously provided for the full year. We are making good headway towards the medium-term targets set at our Capital Markets Event last year, as we move with greater pace to realise our significant potential.”

Statutory reporting

Statutory reporting takes account of all items excluded from headline performance.
See accounting policies for an explanation of the presentation of results and note 3 to the financial statements for an analysis of non-headline items.


The following definitions are applied throughout the financial report:
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 Organic modifies headline revenue to exclude the effects of foreign exchange and acquisitions.
3 Underlying modifies headline performance to exclude the effects of foreign exchange, acquisitions, restructuring costs, the share buyback and include depreciation and amortisation of discontinued operations.
4 Operating cash conversion excludes the impact of restructuring spend.
5 Continuing operations exclude Smiths Medical which is accounted for as ‘discontinued operations – businesses held for sale’. Discontinued operations are defined in note 17 to the financial statements.
6 Total Group comprises continuing operations and discontinued operations.
7 Alternative Performance Measures (“APMs”) are defined in note 19 to the financial statements.


View the full press release


Investor enquiries

Jemma Spalton, Smiths Group
+44 (0)7867 390350

Media enquiries

Media enquiries
+44 (0)7702 443312



The webcast management presentation and Q&A will begin at 08.30 (UK time) today at:
A recording will be available from 13.00 (UK time).


Legal Entity Identifier (LEI): 213800MJL6IPZS3ASA11


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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