Smiths Group PLC on Wednesday reported ‘strong’ revenue growth for the first quarter of financial 2023 as it backed annual guidance.

The FTSE-100 engineering firm said it delivered organic revenue growth of 13% for the three months that ended on October 31.

Smiths said this ‘positive start’ to the financial year reinforces its confidence in its annual guidance of 4% to 4.5% organic revenue growth with moderate margin improvement.

The company said its John Crane business posted ‘steady growth’ in the first quarter with growth across both its Energy and Industrials segments. Its Smiths Detection business also delivered strong growth across both Aviation and Other Security Systems, supported by its ‘large order book and benefiting from phasing of deliveries in the first quarter’.

Group Chief Executive Paul Keel said: ‘We are pleased with our strong start to the fiscal year, building on a successful [financial year 2022] and maintain guidance of 4% to 4.5% organic revenue growth with moderate margin improvement for [financial year 2023].’

Smiths Group added that it has returned £617 million of the £742 million share buyback programme. It said the programme is expected to complete in early 2023 at the current run-rate and share price.

The company will publish its results for the six months ending January 31 on March 24 next year.

In September, Smiths said revenue in the financial year that ended July 31 rose 6.8% to £2.57 billion from £2.41 billion a year prior, while pretax profit fell 57% to £103 million from £240 million, as operating costs rose by 18% to £2.45 billion from £2.08 billion.

Shares were up 3.7% at 1,608.50 pence each on Wednesday morning in London.

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