Smiths Group in £100m buyback as H1 earnings rise

26th Mar 2024 07:03

(Sharecast News) - UK engineering group Smiths named a new chief executive and launched a £100m share buyback as it reaffirmed annual guidance after a rise in half-year earnings.

The company which covers the industrial, energy and aerospace sectors said insider Roland Carter would take over as CEO , succeeding Paul Keel who will step down with immediate effect.

Carter ran Smiths Detection, which makes security screening systems and was involved in establishing the group's joint venture in China as its head of Asia-Pacific.

Group operating profit for the six months to January 31 rose 2.7% to £192m. Orders grew 16.5%, although revenue in its general industrial division - it's biggest sector - fell 5.5%.

"For full-year 2024, we reaffirm our guidance of organic revenue growth within our medium-term target range of 4-6%, underpinned by record order books," the company said.

"We expect growth to improve in the second half, supported by continued strength in end markets such as aerospace, security and energy, and gradually improving market conditions in US HVAC and semiconductors. We also reaffirm our expectation for continued margin expansion."

Reporting by Frank Prenesti for Sharecast.com