Smiths Group: Preliminary results for the 12 months ended 31 July 2003

Highlights:

• Pre-tax profit of 384m* (-3%) and EPS of 50.1p* (-2%) incl. discont. activities
• Operating profit* up 2% to 372m on continuing activities
• Operating cash-flow (after capital expenditure) at 90% of profit*
• Annual dividend increased by 2% to 26p
• New divisional structure focuses on growth opportunities
• Good progress on disposals of non-core activities
• R&D increased by 18% to 251m
• Statutory EPS of 20.0p (33.3p) after goodwill write-down on Polymer disposal

*(before goodwill amortisation and exceptionals)

Commenting on the results, Keith Butler-Wheelhouse, Chief Executive said:

We achieved an increase in operating profit and held earnings close to last years on a continuing basis, while absorbing the commercial aerospace downturn, the impact of a weaker dollar and higher pension costs. Meanwhile, we have been successfully re-shaping the company to focus on strong, long-term growth opportunities, including establishing Smiths Detection as a separate entity and making sizeable disposals. This marks the 33rd year of consecutive dividend increases by Smiths Group.

ENDS