Smiths Group plc (LON: SMIN) have seen their shares rally following a bullish trading update, published on Wednesday morning.
Shares of Smiths Group are trading at 1,674p seeing a 3.46% rise. 13/11/19 11:28BST.
Smiths Group said that its annual expectations remain unchanged following a strong trading period leading to double digit revenue growth in the first quarter.
In September, shareholders of Smiths Group saw shares rally after a ICU Medical (NASDAQ: ICUI) revived their interest in the British Engineering firm, however this approach was rejected.
The FTSE 100 (INDEXFTSE: UKX) listed engineer said revenue for the three months to the end of October was up 11% on an underlying basis, thanks to continued “good” growth in John Crane in both original equipment and aftermarket.
Elsewhere, Smiths reported strong growth in its Detection division, helped by contract wins, while the Interconnect unit was hurt by a slowdown in the semiconductor market.
The Flex-Tech Division reported organic growth after applications were reported in the aerospace and industrial sector.
“For the full year, the group expects year on year growth to be weighted towards the first half and to result in a more even balance in overall performance between the first and second halves of the year,” it said.
In an industry which is becoming increasingly competitive, rivals have also made gains.
Ultra Electronics (LON: ULE) gave a trading update that was inline with expectations, additionally Boeing (NYSE: BA) experienced a strong trading year with continued demand.
For the full year, the London-headquartered company said it expects year-on-year growth to be weighted towards the first half.
After a strong trading update from the British engineer, shareholders will be pleased about the performance from the FTSE100 listed engineer.
This could be the start of a strong trading year for Smiths Group, and throughout 2019 the firm alluded to technical and operational developments in their products.
Shareholders should remain optimistic about future outlook following the reassurance provided in this morning’s update.