Smiths leaps 25% despite the defence cuts

Technology firm Smiths Group today admitted delays in orders for its security scanners were hitting sales, but still posted a 25% jump in pre-tax profit to £224 million for the six months to February.

Sales at Smiths' detection business, which makes scanners for airports, ports and the military, fell 9%. The firm seems to be suffering from defence budget cuts, saying it expected only the order book for non-military markets to grow. However, it said that was enough to suggest "a more positive outlook for the second half".

The biggest division, Smiths Medical, also saw sales fall 2%. "These figures demonstrate the benefit of our self-help initiatives and operational improvements across the group," said chief executive Philip Bowman. The dividend is up 7% to 11.25p.