Business

Smiths Group warns on spending cuts

Syringe
Image caption Smith Group specialises in medical equipment

Engineering technology firm Smiths Group has said government spending cuts will hit sales in the coming months.

The warning came as the group reported a sharp rise in profits for the year to the end of July, to £435m from £371m a year earlier.

Revenue rose by more than £100m to £2.8bn, while margins hit a 10-year high, it said.

The focus would remain on cost savings to improve margins in light of the "uncertain economic outlook", it added.

"We have delivered a strong performance in a tough economic environment," said Smith's chief executive Philip Bowman.

"The uncertain economic outlook and constraints on government spending will continue to affect sales growth."

Smiths Group comprises five divisions - Smiths Detection, Smiths Medical, John Crane, Smiths Interconnect and Flex-Tek.