Smiths Group plan to make further acquisitions

Fri, 30 Sep 2016 | BUSINESS NEWS

Engineering and technology conglomerate, Smiths Group could be planning on making further acquisitions. The announcement comes after the FTSE 100 group agreed to purchase Morpho, a French aerospace group for $710m (£548m).

The group began as a jewellery shop 165 years ago and has a number of businesses ranging from X-ray scanners to heating elements and medical infusion pumps. As a result, city analysts have long assumed the company will break up.

Instead, chief executive Andrew Reynolds Smith has outlined a roadmap strategy where it hopes to achieve a top three leadership position in its market segments. Where it cannot reach the top three, it will dispense of these divisions.

The new roadmap comes after Smiths have revealed that current conditions on the energy markets have been tough on the group. With fewer orders of equipment in its business that supplies the oil and gas sector, the group’s operating margin has fallen 30 basis points to 17.3 per cent. In response, Smiths have stated it would look to increase sales in the chemicals, pharmaceuticals and pulp and paper.

Sales in the group’s other four divisions increased, revenue dipped to £2.95 billion. This was blamed on the weaker pound. Pre-tax profits, thanks to lower one-off costs, rose to 6.5 per cent to £346m over the previous year.

“We are in build and grow mode and we will be doing some pruning and grafting on the way,” said Mr Reynolds Smith.

“We see a potential roadmap to becoming one of the world’s leading technology companies, but we have to be more focused in how we invest and improve our competitiveness.”

On the back of this announcement, shares in the company rose 3.6 per cent on Wednesday to £14.37, giving a total market value of £5.7bn.

For the latest businesses in administration see here


Share this article



Latest Businesses for Sale

Access Control Systems & CCTV Consultancy
Hertfordshire, South East, UK

Offers an extensive range of specialist property development solutions. Provides a multitude of security systems, including installation and maintenance. Works with circa 140 active clients, 85% of whom provide repeat business. Offered for sale to fa...

Asking Price: Offers Invited
Turnover: £530,000

FREEHOLD


Group of Woodwork Companies
South of England, UK Wide

Company 1: High-end designers and makers of furniture and kitchens to both private individuals, and commercial clients. Fully bespoke and high value work. Company 2: A highly recognised brand, sheet materials cut to size, edge-banded and spray finish...

Asking Price: Offers Invited
Turnover: £2,970,000

LEASEHOLD


Dog Care Products Retailer
South East, UK

Supplies a range of products, including crates, beds, leads and toys to private and trade customers across the UK and internationally. The company owns the full product ranges and IP for brands of dog identification tags which can be engraved in-hous...

Asking Price: Offers Invited
Turnover: £841,000

LEASEHOLD



View more businesses for sale

News Search

Latest News

 
31
 
Mar
 

Coronavirus Business Interruption Loan Scheme to cover business acquisitions | BUSINESS NEWS

The UK government has launched the Coronavirus Business Inte...

 
30
 
Mar
 

Tech group The Panoply acquires consultancy firm Ameo | BUSINESS SALE

Business consultancy firm Ameo has been acquired by AIM-list...

 
27
 
Mar
 

Addison Lee acquired by consortium of investors | BUSINESS SALE

Addison Lee Group, London’s biggest private care hire ...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide

Email


Related News

 
24
 
Mar
 

Sprawling Smiths Group looks to divest as it refocuses | BUSINESS SALE

Engineering and tech giant Smiths Group could sell off its u...

Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources