LONDON (dpa-AFX) - Smiths Group plc (SMIN.L) said its reported year-to-date revenue increased 6%, including 3% from the acquisition of United Flexible. For the ten months ended 31 May 2020, underlying revenue for continuing operations was up 2%. For the four months of the second half ended 31 May 2020, underlying revenue was up 1%.
Smiths Group also announced a strategic restructuring programme, which will support the achievement of its goal to deliver operating margins of 18-20%. The programme is Group-wide and has an operating cash cost of approximately 65 million pounds which will be spread across fiscal 2020 and fiscal 2021. The Group said savings will substantially offset costs in fiscal 2021 and deliver the full annualised benefit of approximatively 70 million pounds from fiscal 2022 onwards.
Alongside an undrawn revolving credit facility of 640 million pounds, the Group has access to surplus liquidity of around 950 million pounds. The Group said it is currently operating in all 75 manufacturing plants, but are not immune to higher consequential costs.
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