Smiths responds to green energy dynamic

Smiths Group (SMIN) beat market expectations in FY2023, posting an 11.6 per cent increase in organic revenue, helped along by a combination of rising volumes and pricing that more than offset inflation. Headline operating profit was 12.7 per cent ahead of the prior year comparator on a 10 basis point increase in the underlying margin. Progress through the period under review was also reflected in a 150 basis point increase in return on capital-employed to 15.7 per cent and a vast improvement in the cash conversion rate. The launch of new products accounted for 3.1 per cent of reported growth.