Smiths Group Plc. (SMIN.L,SMGZY,SMGKF), a British engineering company, on Friday updated fiscal 2026 outlook to reflect planned sale of Smiths Detection, after reporting lower profit and revenue from continuing operations in the first half.
Further, the firm announced a further 1.5 billion pounds to be returned to shareholders through a combination of structured return, such as tender offer or special dividend, and share buyback through calendar year 2027, to commence following completion of Smiths Detection sale.
In London, the shares were losing around 3.6 percent, to trade at 2,266.00 pence.
The Board is recommending an interim dividend of 15.00 pence per share, a year-on-year increase of +5.4 percent. The interim dividend will be paid on May 13 to shareholders on the register at close of business on April 7.
The company noted that Smiths Detection, Smiths Interconnect and certain general industrial businesses within Flex-Tek are now classified as discontinued operations, and the assets and liabilities have been classified as held for sale.
Excluding Smiths Detection, the firm updated fiscal 2026 outlook for continuing operations, and now expects organic revenue growth of 3 percent to 4 percent, with second-half growth within medium-term 5 percent to 7 percent target range. Operating profit margin is now expected around 20 percent, progressing towards 21 percent to 23 percent target range.
The company previously expected fiscal 2026 on a continuing operations basis of organic revenue growth of 4 percent to 6 percent with continuing margin expansion.
In the first half, profit before taxation declined to 126 million pounds from last year's 152 million pounds.
Total profit for the year was 131 million pounds or 40.2 pence per share, down 22 percent from 168 million pounds or 48.7 pence per share a year ago.
The company's earnings from continuing operations came in at 83 million pounds or 25.7 pence per share, lower than 110 million pounds or 32.1 pence per share last year.
Headline pre-tax profit was 158 million pounds, compared to 168 million pounds last year.
Headline earnings from continuing operations were 118 million pounds or 0.365 pounds per share for the period, compared to 126 million pounds last year.
Headline operating profit grew 5.6 percent year-over-year to 248 million pounds, and operating profit margin improved to 17.2 percent from 16.7 percent a year ago.
The company's revenue for the period continuing operations fell 1 percent to 915 million pounds from 924 million pounds last year. The Group delivered 0.4 percent organic revenue growth.
Headline Group Revenue was 1.437 billion pounds, up 2.2 percent from 1.406 billion pounds last year. Organic growth was 4 percent.
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