Following a meeting of the Board yesterday, Smiths Group is providing the following pre-close trading update for the financial year ending 31 July, 2013.
Trading for all divisions except Smiths Detection has continued broadly in line with the interim management statement issued on 24 May, 2013. In this statement, we indicated that the headline operating margin at Smiths Detection had been affected by contract mix and the initial under-recovery of overheads at new manufacturing sites.
Since this statement, Smiths Detection has identified that the final outcome of three contractual commitments entered into prior to 2010 are anticipated to be materially adverse to previous expectations. Smiths Detection has also determined to make additional provisions for the costs associated with certain legal disputes. As a result, headline operating profit for the Group overall is likely to be up to £15m below current expectations.
The results for the financial year ended 31 July 2013 will be announced on 18 September 2013.