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26 September 2023

Smiths Group plc – Full Year Results for 12 months ended 31 July 2023

A year of record organic revenue and headline EPS growth

Pioneers of progress – improving our world through smarter engineering

Record annual growth – organic1 revenue growth of +11.6%; headline2 EPS growth of +39.6%

  • Full year growth delivered ahead of guidance, balanced between price and volume
  • +310bps of growth from new products, demonstrating the impact of innovation
  • Well positioned for FY2024 growth within our medium-term targets, with orders3 up +6.7%

Continued improvement in execution – Smiths Excellence System (“SES”) delivering benefits

  • Headline operating profit growth of +20.0%; with margin expansion of +20bps to 16.5%
  • ROCE up +150bps to 15.7%, benefiting from strong profit growth
  • Cash conversion2 up 6 percentage points to 86%; with improvement in working capital
  • Advancing our Sustainability strategy with significant progress across our environmental metrics

Empowering our people – increasing engagement with our colleagues and communities

  • Continued improvement in our safety record, with a 26% reduction in Recordable Incident Rate
  • Successful rollout of Smiths Leadership Behaviours, driving our high-performance workforce
  • High employee engagement reflected in 310bps reduction in voluntary turnover
  • Launched Smiths Foundation, committing an initial £10m towards charitable STEM-related causes

Strong balance sheet – providing flexibility on capital allocation

  • Successful acquisition of Plastronics in Jan 2023 and Heating & Cooling Products in Aug 2023
  • Net debt to EBITDA of 0.7x; £387m net debt
  • £350m returned to shareholders through dividends and share buyback, which is now complete
  • Proposed final dividend of 28.7p, up 5.1%, bringing the full year to 41.6p

FY2024 Outlook

  • Expect FY2024 organic revenue growth within our medium-term target range of 4-6%, with continued margin expansion
Headline2 FY2023 FY2022 Reported Organic1
Revenue £3,037m £2,566m +18.3% +11.6%
Operating profit £501m £417m +20.0% +12.7%
Operating profit margin4 16.5% 16.3% +20bps +10bps
Basic EPS 97.5p 69.8p +39.6%  
ROCE4 15.7% 14.2% +150bps  
Operating cash conversion4 86% 80% +600bps  


Statutory FY2023 FY2022 Reported
Revenue £3,037m £2,566m +18.3%
Operating profit £403m £117m +244.4%
Profit for the year (after tax)5 £232m £1,035m (77.6)%
Basic EPS5 65.5p 267.1p (75.5)%
Dividend per share 41.6p 39.6p +5.1%


Paul Keel, Chief Executive Officer, commented:

“We had another strong year of progress in fiscal 2023 as we further accelerated our growth, sharpened our execution, and developed our talented people. We delivered year-on-year improvement against all five of our medium-term financial commitments, including record organic sales and EPS growth.

“Innovation is central to our purpose of improving our world through smarter engineering, and new product launches contributed more than three percentage points to our growth. We continued to invest in R&D as artificial intelligence and other digital technologies are playing an increasingly important role in enabling us to support our customers more effectively. We are also further building our capabilities to capitalise on the growing megatrends we are exposed to across the major markets we serve, including energy transition and the world’s ever-increasing need for better security.

“Looking forward to our next fiscal year, we expect to deliver 4-6% organic revenue growth, in line with our medium-term financial commitment. I applaud my 15,000 colleagues around the world who live Smiths’ purpose each and every day. We are encouraged by our progress, proud of our accomplishments in FY2023, and even more excited by all we see ahead for Smiths.”


Upcoming Events

Date Event
16 November 2023 Q1 Trading Update
16 November 2023 Annual General Meeting
30 November 2023 John Crane Deep Dive
22 March 2024 HY2024 Interim Results


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 Organic is headline adjusted to exclude the effects of foreign exchange and acquisitions.
2 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. Headline performance is on a Smiths Group basis, excluding the results of Smiths Medical.
3 Order intake growth excludes the effects of foreign exchange.
4 Alternative Performance Measures (“APMs”) and Key Performance Indicators (“KPIs”) are defined in note 29 to the financial statements.
5 FY2022 statutory profit and EPS includes the proceeds from the sale of Medical.


View the full press release


Investor enquiries

Stephanie Heathers, Smiths Group
+44 (0)7584 113633

Ahmed Ammori, Smiths Group
+44 (0)7384 901695

Siobhán Andrews, Smiths Group
+44 (0)7920 230093

Media enquiries

Tom Steiner, Smiths Group
+44 (0) 7787 415891

Alex Le May, FTI Consulting
+44 (0)7702 443312



The webcast 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. 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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