Latest news with #SmithsGroup
Telegraph
16-07-2025
- Business
- Telegraph
This engineer's share price has soared 33pc despite tariff troubles
Questor is The Telegraph's stock-picking column, helping you decode the markets and offering insights on where to invest. An upgrade to future profit guidance typically galvanises investor sentiment. Indeed, firms that raise their projections for bottom line growth often experience a sharp increase in their share price as investors hurriedly factor in a more bullish outlook. This has proven to be the case with engineering company Smiths Group. Shares in the FTSE 100 member have soared 33pc higher since the start of the year. In doing so, they have outperformed the wider index by 25 percentage points. This performance follows two upgrades to the firm's profit guidance during the current financial year, as well as a recent trading statement which flagged that this year's organic revenue growth (which excludes the impact of acquisitions) will now be towards the top end of a 6pc-8pc forecast. The company's third-quarter trading update also showed that it is experiencing growth across each of its various divisions. Combined, this meant that organic revenue growth stood at 10.6pc for the quarter and at 9.6pc for the first three quarters of the current financial year. The firm's operating profit margin, meanwhile, is still set to grow by 40-60 basis points in the 2025 financial year. This follows a 34 basis point increase last year and a 50 basis point rise in the first half of the current year. When considered alongside last year's return on an equity figure of around 16pc, this highlights continued improvement in the firm's competitive position. Rising profit margins alongside brisk revenue growth mean that the company's bottom line is set to increase at an annualised rate of 11pc over the next two financial years. While this figure could naturally be affected by potential changes to tariff rates, Smiths Group is relatively well placed to overcome a global trade war. Although 45pc of its revenue is generated in the US, a significant majority of its sales to the world's largest economy are domestically produced. This means that, while a global economic slowdown caused by greater protectionism could impact its financial performance, it may be better able to overcome the imposition of higher tariffs than many other firms. Furthermore, the company's sound balance sheet means it is well placed to capitalise on any future economic downturn via M&A activity. It has a net gearing ratio of just 12pc, while net interest costs were covered over 20 times by operating profits in the first half of the year. This has allowed the firm to make several acquisitions over recent years, and it expects to make further purchases over the medium term. Sound finances also mean the company is able to engage in a share buyback programme totalling £500m. It has currently purchased £260m of shares and expects to complete the remainder by the end of the calendar year, which should provide support to its share price in the short run. Investor sentiment may also be buoyed by the implementation of a revised strategy announced earlier this year. The company plans to divest several parts of its business over the coming months in order to focus on faster growing segments that offer greater scope for rising profitability. Since Questor tipped Smiths Group as a 'buy' during May 2017, it has produced a 46pc capital return, which compares favourably with a 16pc gain for the FTSE 100 index. Since being added to our income portfolio in November last year, it has gained 34pc. A surging share price unsurprisingly means the company's dividend yield has fallen from an already below average 2.5pc eight months ago to just 1.9pc today. However, the company's dividend cover of 2.4 and growth in shareholder payouts last year of 5.2pc, which was more than twice the rate of inflation, still hold significant appeal – and with double-digit profit growth ahead, which could prompt further inflation-beating dividend increases, the stock's income appeal remains relatively high. Trading on a price-to-earnings ratio of 21.9, Smiths Group still offers scope for an upward rerating. Its strong competitive position and excellent balance sheet highlight that it remains a high-quality company that investors are likely to become increasingly bullish towards as it delivers a faster pace of profit growth. With the potential for further acquisitions, as well as the positive influence of a share buyback programme, Questor remains upbeat about the company's share price prospects and its capacity to deliver further index outperformance. Therefore, it represents a worthwhile long-term purchase that has not yet delivered on its potential. Questor says: buy Ticker: SMIN Share price at close: 23.06
Zawya
17-06-2025
- Business
- Zawya
John Crane introduces versatile next-generation Coaxial Seal, engineered for success and efficiency
Designed to maintain seal performance even in the event of multiple failure scenarios Developed to address customers' pain points across the energy and process industries, including oil and gas, power generation and clean energy Supports regional initiatives like the UAE's Make it in the Emirates and Saudi Green Initiative, by offering significant efficiency and sustainability benefits Dubai, United Arab Emirates – John Crane, a global leader in rotating equipment solutions, and a business of Smiths Group plc, today announced the launch of the Type 93AX Coaxial Separation Seal – a next generation dry gas sealing solution engineered to help customers reduce emissions, improve equipment reliability, and lower operational costs. The Type 93AX builds on John Crane's legacy of industrial sealing expertise with a robust, fail-safe design that remains operational even in the event of multiple failure scenarios. Designed based on direct customer feedback, our test data indicates the mechanical seal reduces nitrogen consumption by up to 80% in test data, compared to conventional radial separation seals – offering significant efficiency and sustainability benefits. This is particularly important in the Middle East, considering its investment in the industrial sector and regional sustainability goals, such as the UAE's Net Zero 2050 Strategy, Make in the Emirates Initiative, and the Saudi Vision 2030's Saudi Green Initiative. Each includes key, green roadmaps to reduce industrial carbon emissions by over 90% in some cases, through partnerships with public and private sector partners. Addressing real industry challenges Research has shown that contamination is a significant contributor to dry gas seal failures, making it one of the leading causes of unscheduled maintenance and equipment downtime. The Type 93AX is engineered to prevent oil ingress from the compressor bearing chamber, minimising this risk and supporting more reliable, continuous operation. According to Deloitte, unplanned downtime costs the global process industries an estimated $50 billion annually, with equipment failure responsible for 42% of that unplanned downtime. In energy and process applications, this can result in losses of up to $42 million per facility per year, on average. The Type 93AX is designed to mitigate both performance and financial risks by extending the reliability of the dry gas seal system and reducing demand on supporting infrastructure such as nitrogen (N2) generators and air compressors. Three operating scenarios for added resilience The seal supports three operating states and automatically adapts in failure situations to minimise disruption and contain gas or oil migration: Scenario 1: Standard operation: Non-contacting operation provides positive oil ingress mitigation. Scenario 2: Separation gas loss: Maintains non-contacting operation and oil control even without separation gas. Scenario 3: Dry gas seal failure: Restricts process gas leakage during compressor shutdown (up to 35 bar), while maintaining seal integrity up to 70 bar. Supporting operational and sustainability goals The Type 93AX helps contribute to sustainability goals through reduced emissions and lower energy usage. By cutting nitrogen use by up to 80%, according to test data, it decreases demand on N2 generation systems – a source of both energy consumption and cost. According to the International Energy Agency (IEA), improving industrial efficiency could cut global energy use by 12% by 2040, further underlining the importance of solutions like the Type 93AX. Mike Eason, Chief Technology Officer at John Crane, said: 'Our customers told us they wanted a separation seal that increases safety, efficiency, and reliability. The Type 93AX delivers on these priorities. It's designed to keep working in real-world failure conditions to protect their most critical assets, and reduce environmental impact, while driving down OPEX and CAPEX. Eason continued: 'The new seal is compatible with John Crane's dry gas seal portfolio and is supported by a global network of over 200 facilities, including manufacturing, sales and services, and 13 global turbo service centers in more than 50 countries. It can be sold as part of a bundled first-fit order or compressor upgrade or supplied as a stand-alone product to meet customer-specific requirements.' More information can be found here: About John Crane John Crane is a global leader in mission-critical technologies for the energy and process industries and an innovator in rotating equipment, encompassing mechanical seals, couplings, filtration systems and cutting-edge asset management and digital diagnostics solutions. Blending a rich legacy of innovation with a commitment to service excellence, we've enabled our customer's reliable and sustainable operations for over a century. While recognising the role of traditional energy, we are pioneering solutions that enable cleaner alternatives, crafting a vision for a sustainable energy future. Our extensive global presence underscores our promise to customers, with over 200 service centres in 50 countries. With over £1.1 billion in revenue in 2024, we are an integral pillar of Smiths Group plc, a FTSE 100 listed industrial technology company dedicated to engineering a better future. Visit for more. Media Contacts Jessica Cross, Senior Campaign Manager representing John Crane Hayat Abdul Moula, Campaign Coordinator representing John Crane JohnCraneUAE@
Yahoo
17-06-2025
- Business
- Yahoo
John Crane introduces versatile next-generation Coaxial Seal, engineered for success and efficiency
New Type 93AX Coaxial Separation Seal reduces nitrogen consumption by up to 80% Designed to maintain seal performance even in the event of multiple failure scenarios Developed to address customers' pain points across the energy and process industries, including oil and gas, power generation and clean energy SLOUGH, England, June 17, 2025 /CNW/ -- John Crane, a global leader in rotating equipment solutions, and a business of Smiths Group plc, today announced the launch of the Type 93AX Coaxial Separation Seal – a next generation dry gas sealing solution engineered to help customers reduce emissions, improve equipment reliability, and lower operational costs. The Type 93AX builds on John Crane's legacy of industrial sealing expertise with a robust, fail-safe design that remains operational even in the event of multiple failure scenarios. Designed based on direct customer feedback, test data indicates the mechanical seal reduces nitrogen consumption by up to 80%, compared to conventional radial separation seals – offering significant efficiency and sustainability benefits. Addressing real industry challenges Research has shown that contamination is a significant contributor to dry gas seal failures, making it one of the leading causes of unscheduled maintenance and equipment downtime. The Type 93AX is engineered to prevent oil ingress from the compressor bearing chamber, minimising this risk and supporting more reliable, continuous operation. According to Deloitte, unplanned downtime costs the global process industries an estimated $50 billion annually, with equipment failure responsible for 42% of that unplanned downtime. In energy and process applications, this can result in losses of up to $42 million per facility per year, on average. The Type 93AX is designed to mitigate both performance and financial risks by extending the reliability of the dry gas seal system and reducing demand on supporting infrastructure such as nitrogen (N2) generators and air compressors. Three operating scenarios for added resilience The seal supports three operating modes and automatically adapts in failure situations to minimise disruption and contain gas or oil migration: Scenario 1: Standard operation: Non-contacting operation provides positive oil ingress mitigation. Scenario 2: Separation gas loss: Maintains non-contacting operation and oil control even without separation gas. Scenario 3: Dry gas seal failure: Restricts process gas leakage during compressor shutdown (up to 35 bar), while maintaining seal integrity up to 70 bar. Supporting operational and sustainability goals The Type 93AX helps contribute to sustainability goals through reduced emissions and lower energy usage. By cutting nitrogen use by up to 80%, it decreases demand on N2 generation systems – a source of both energy consumption and cost. According to the International Energy Agency (IEA), improving industrial efficiency could cut global energy use by 12% by 2040, further underlining the importance of solutions like the Type 93AX. Mike Eason, Chief Technology Officer at John Crane, said: "Our customers told us they wanted a separation seal that increases safety, efficiency, and reliability. The Type 93AX delivers on these priorities. It's designed to keep working in real-world failure conditions to protect their most critical assets, and reduce environmental impact, while driving down OPEX and CAPEX. Eason continued: "The new seal is compatible with John Crane's dry gas seal portfolio and is supported by a global network of over 200 facilities, including manufacturing, sales and services, and 13 global turbo service centres in more than 50 countries. It can be sold as part of a bundled first-fit order or compressor upgrade, or supplied as a stand-alone product to meet customer-specific requirements. More information can be found here: About John Crane John Crane is a global leader in mission-critical technologies for the energy and process industries and an innovator in rotating equipment, encompassing mechanical seals, couplings, filtration systems, cutting-edge asset management, and digital diagnostics solutions. Blending a rich legacy of innovation with a commitment to service excellence, we have enabled our customers to operate reliably and sustainably for over a century. While recognising the role of traditional energy, we are pioneering solutions that enable cleaner alternatives, crafting a vision for a sustainable energy future. Our extensive global presence underscores our promise to customers, with over 200 facilities, including manufacturing, sales and service, in more than 50 countries across the globe. With over £1.1 billion in revenue in Fiscal Year 2024, we are an integral pillar of Smiths Group plc, a FTSE 100 listed industrial technology company dedicated to engineering a better future. Visit for more. View original content: SOURCE John Crane View original content: Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Daily Mail
20-05-2025
- Business
- Daily Mail
Engineer Smiths buoyed by demand for baggage scanners
Smiths Group forecasts annual sales growth towards the top end of its guidance range, thanks to a robust performance by its sensors business. The FTSE 100 engineering company reported organic turnover increased by 10.6 per cent in the quarter ending 3 May, bringing total revenue growth to 9.6 per cent over the first nine months of its financial year. Its Smiths Detection arm, which makes explosives detectors and baggage scanners, scored 'strong double-digit' percentage rate over the quarter on solid demand from the aviation sector. Smiths also achieved double-digit growth from its Interconnect segment, whose products include radio frequency components, thanks to contracts from aerospace and defence firms and a recovery in the semiconductor market. For the full year, Smiths expects its organic revenues to rise by 6 to 8 per cent and its margins to expand by around 40 to 60 basis points. All four of its businesses scored higher sales, but its John Crane arm only achieved a marginal rise due to a cyber incident in January that Smiths said had a 'longer than expected impact' on growth. Consequently, the London-based company believes the division's second-half performance will be 'broadly in line with the first half'. Smiths expects its full-year revenue to increase by 6 to 8 per cent on an organic basis and its margins to expand by about 40 to 60 basis points. The firm is currently planning a major restructuring amidst pressure from activist investors like Engine Capital to break up the business and boost shareholder returns. It expects to announce the sale of its Interconnect arm by the end of 2025, followed by either a demerger or disposal of its Smiths Detection segment. Roland Carter, chief executive of Smiths, said: 'We are executing on the strategic actions we announced in January with pace and purpose to unlock our inherent value and become a premium-rated company.' He added: 'The sale process for Smiths Interconnect is firmly underway and preparatory work for the Smiths Detection separation process is also moving forwards.' Smiths also declared that it anticipates 'limited' impact from tariffs owing to its 'local-for-local model.' About 45 per cent of its sales are US-generated. It told investors it was 'closely monitoring' the potential impact of tariffs on demand and had not observed 'any material changes in customer behaviour to date.' Smiths Group shares were 4.7 per cent up at £21.50 just before midday on Tuesday, making them the FTSE 100 Index's second-biggest riser.
Reuters
20-05-2025
- Business
- Reuters
FTSE 100 climbs to 2-month highs on strong earnings
May 20 (Reuters) - The UK's FTSE 100 rose to a two-month high on Tuesday, as Diploma shares touched a record high after an upbeat forecast, while a host of other positive earnings reports also added to the buoyant sentiment. The blue-chip FTSE 100 (.FTSE), opens new tab rose 0.6% by 1053 GMT, trading at its strongest level since March 7. Diploma (DPLM.L), opens new tab jumped about 18% to an all-time high after the technical products and service distributor raised its full-year organic revenue growth forecast, while its first-half sales jumped on strong demand for its cables and wires. Engineering company Smiths Group (SMIN.L), opens new tab gained 4.7% after it said annual organic revenue growth would reach the top end of its 6%-8% forecast range. The FTSE 100 was rising for a fourth day as global markets regained stability after a surprise U.S. credit rating downgrade by Moody's unsettled investors on Monday. Britain on Monday reached a wide-ranging deal with the EU including a security and defence pact, fewer restrictions on British food exporters and visitors, and a contentious new fishing agreement. Meanwhile, Bank of England Chief Economist Huw Pill said the central bank's pace of interest rate cuts had been too fast given still strong wage pressures on inflation. The BoE cut interest rates by a quarter point to 4.25% in a three-way split vote earlier this month, where Pill voted to keep rates steady. Britain's inflation data, which is set to be released on Wednesday, is likely to show consumer prices increased sharply in April, driven in part by higher energy bills. The midcap index (.FTMC), opens new tab gained 0.7% to trade at a three-month high. Greggs (GRG.L), opens new tab topped the midcap index after the fast food chain reported sales growth picking up as the year progressed, helped by better trading conditions. Its shares climbed 7.2%. Meat producer Cranswick (CWK.L), opens new tab advanced 5.1% after reporting annual pretax profit ahead of market expectations. SSP Group (SSPG.L), opens new tab rose 5.4% after the food outlets operator launched a cost-cutting drive and a turnaround plan to revive profitability in continental Europe, its largest market.
