In summary, the year marked
a great stride forward for Smiths Group. The company is larger
and stronger, but retains the long-held virtues for which we have
always been recognised: profitable growth, excellent margins,
exemplary cash generation and a sound balance
sheet. Moreover, we have the ability to restructure quickly and
focus investment on areas of greatest opportunity. It is a proven
formula, and the best way we know of delivering value to shareholders.
We recognise that the prospects for the world economies are uncertain
at present, and Smiths is not immune to these external market
forces. The civil aerospace business, less than 20% of sales,
will be most directly affected. However, the company's wide spread
of activities from defence to healthcare, strong market positions,
increased competitiveness from restructuring and its emphasis
on cash-flow all contribute to its greater resilience during more
difficult trading conditions. The company is confident that it
can continue to outperform in the period ahead.
Keith Butler-Wheelhouse
Chief Executive
