Shares in medical technology firm Smith & Nephew (SN.) jump 3% to £15.14 on an upbeat outlook for the full year and comments that management is 'increasingly confident' of hitting the top end of its sales growth target.
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Underlying first quarter revenues improved by 4.4% despite currency headwinds reducing reported growth rates to just 0.5%.
All three global divisions contributed to the underlying growth; the largest, Orthopaedics contributed 3.9%, with Knee implants growing faster than the overall market.
Sports Medicine delivered 5.3% underlying growth, with Joint Repair the standout performer at 11%. China’s adoption of minimally-invasive techniques accelerated in the quarter, while in the US the shoulder-repair portfolio performed strongly.
Advanced Wound Management delivered 4.1% underlying growth, with Advanced Wound Services the stand-out performer, continuing to deliver double-digit growth of 16.4%.
The company has been spending on acquisitions to secure additional growth drivers and build a diversified technology base.
Management are confident that improved execution and further well-judged acquisitions will allow sustainable growth at or above market levels and it sees organic growth this year at the top end of its target range of 2.5% to 3.5%.
Smith & Nephew has leadership positions across its portfolio of activities. This is reflected in a higher than average Return on Equity which is a good indicator of a quality business.
